This paper makes two contributions to the literature on terrorism: 1) It presents a model that explains the cyclical characteristics of terrorist attacks, and 2) It improves on the existing theoretical cyclical models since it takes explicitly into account terrorists motivations and decision-making. The model assumes that the government acts as leader and terrorists as followers. Terrorists maximize terrorist acts over time constrained by their budget constraint, which yields a time path for terrorist activities. Then the government maximizes national security by taking the time path of terrorist activities and investments in enforcement as constraints. The model shows that permanent cyclical paths for enforcement, terrorist activities, terrorist capital and national security may arise as an optimal solution.
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Volume (Year): 7 (2003)
Issue (Month): 1 (April)
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References listed on IDEAS
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- Grossman, Herschel I, 1999. "Kleptocracy and Revolutions," Oxford Economic Papers, Oxford University Press, vol. 51(2), pages 267-283, April.
- Glaeser, Edward L. & Shapiro, Jesse M., 2002.
"Cities and Warfare: The Impact of Terrorism on Urban Form,"
Journal of Urban Economics,
Elsevier, vol. 51(2), pages 205-224, March.
- Edward L. Glaeser & Jesse M. Shapiro, 2001. "Cities and Warfare: The Impact of Terrorism on Urban Form," NBER Working Papers 8696, National Bureau of Economic Research, Inc.
- Edward L. Glaeser & Jesse M. Shapiro, 2001. "Cities and Warfare: The Impact of Terrorism on Urban Form," Harvard Institute of Economic Research Working Papers 1942, Harvard - Institute of Economic Research.
- Feichtinger, Gustav & Novak, Andreas & Wirl, Franz, 1994. "Limit cycles in intertemporal adjustment models : Theory and applications," Journal of Economic Dynamics and Control, Elsevier, vol. 18(2), pages 353-380, March.
- Feichtinger, G. & Hartl, R.F. & Kort, P.M. & Novak, A.J., 2001. "Terrorism control in the tourism industry," Other publications TiSEM 06ce575b-82fc-41e0-9141-9, Tilburg University, School of Economics and Management. Full references (including those not matched with items on IDEAS)
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