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Global terrorism: deterrence versus pre-emption

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  • Todd Sandler
  • Kevin Siqueira

Abstract

This paper analyses two anti-terrorism policies when a targeted nation's people and property are in jeopardy at home and abroad. A country's deterrence decision involves both external benefits and costs as the terrorist threat is deflected, while its preemption decision typically gives external benefits when the threat is reduced for all potential targets. With damages limited to home interests, a country will overdeter, while, for globalized terror, a country will underdeter. Pre-emption is usually undersupplied. Leader-follower behaviour is apt to lessen inefficiency for deterrence, but worsen inefficiency for pre-emption, compared with simultaneous-choice equilibrium allocations. Targeted nations can never achieve the proper counterterrorism policy through leadership.

Suggested Citation

  • Todd Sandler & Kevin Siqueira, 2006. "Global terrorism: deterrence versus pre-emption," Canadian Journal of Economics, Canadian Economics Association, vol. 39(4), pages 1370-1387, November.
  • Handle: RePEc:cje:issued:v:39:y:2006:i:4:p:1370-1387
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Friedrich Schneider & Tilman Brück & Daniel Meierrieks, 2010. "The Economics of Terrorism and Counter-Terrorism: A Survey (Part I)," Discussion Papers of DIW Berlin 1049, DIW Berlin, German Institute for Economic Research.
    2. Rehman, Faiz Ur & Nasir, Muhammad & Shahbaz, Muhammad, 2017. "What have we learned? Assessing the effectiveness of counterterrorism strategies in Pakistan," Economic Modelling, Elsevier, vol. 64(C), pages 487-495.
    3. Joseph Young & Michael Findley, 2011. "Can peace be purchased? A sectoral-level analysis of aid’s influence on transnational terrorism," Public Choice, Springer, vol. 149(3), pages 365-381, December.
    4. repec:eee:reensy:v:94:y:2009:i:2:p:588-595 is not listed on IDEAS
    5. Wenzel, Lars & Wolf, André, 2013. "Protection against major catastrophes: An economic perspective," HWWI Research Papers 137, Hamburg Institute of International Economics (HWWI).
    6. Bandyopadhyay, Subhayu & Sandler, Todd, 2014. "Immigration policy and counterterrorism," Journal of Public Economics, Elsevier, vol. 110(C), pages 112-123.
    7. Das, Satya P., 2008. "Some mechanisms of terror cycles," Journal of Economic Behavior & Organization, Elsevier, vol. 67(3-4), pages 644-656, September.
    8. Hattori, Keisuke, 2011. "A Note on Within-group Cooperation and Between-group Interaction in the Private Provision of Public Goods," MPRA Paper 32045, University Library of Munich, Germany.
    9. Malcolm Kass & Enrique Fatas & Catherine Eckel & Daniel Arce, 2015. "The UN in the lab," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 45(3), pages 625-651, October.
    10. Satya P. Das & Prabal Roy Chowdhury, 2014. "Deterrence, Preemption, And Panic: A Common-Enemy Problem Of Terrorism," Economic Inquiry, Western Economic Association International, vol. 52(1), pages 219-238, January.
    11. Anderton,Charles H. & Carter,John R., 2009. "Principles of Conflict Economics," Cambridge Books, Cambridge University Press, number 9780521875578, December.
    12. repec:eee:reensy:v:94:y:2009:i:12:p:1927-1941 is not listed on IDEAS
    13. Subhayu Bandyopadhyay & Todd Sandler & Javed Younas, 2011. "Foreign aid as counterterrorism policy," Oxford Economic Papers, Oxford University Press, vol. 63(3), pages 423-447, July.
    14. Kjell Hausken & Jun Zhuang, 2011. "Governments' and Terrorists' Defense and Attack in a T -Period Game," Decision Analysis, INFORMS, vol. 8(1), pages 46-70, March.
    15. Todd Sandler & Daniel G. Arce & Walter Enders, 2011. "An Evaluation of Interpol's Cooperative-Based Counterterrorism Linkages," Journal of Law and Economics, University of Chicago Press, vol. 54(1), pages 79-110.
    16. Peter Egger & Martin Gassebner, 2015. "International terrorism as a trade impediment?," Oxford Economic Papers, Oxford University Press, vol. 67(1), pages 42-62.
    17. Thomas Jensen, 2012. "National Responses to Transnational Terrorism: Intelligence and Counterterrorism Provision," Discussion Papers 12-22, University of Copenhagen. Department of Economics.
    18. Tiberiu Dragu & Mattias Polborn, 2009. "Terrorism Prevention and Electoral Accountability," CESifo Working Paper Series 2864, CESifo Group Munich.
    19. Garcia-Alonso, Maria D.C. & Levine, Paul & Smith, Ron, 2016. "Military aid, direct intervention and counterterrorism," European Journal of Political Economy, Elsevier, vol. 44(C), pages 112-135.
    20. Charles H. Anderton & John R. Carter, 2006. "Applying Intermediate Microeconomics to Terrorism," The Journal of Economic Education, Taylor & Francis Journals, vol. 37(4), pages 442-458, October.
    21. repec:spr:dyngam:v:7:y:2017:i:3:d:10.1007_s13235-016-0188-0 is not listed on IDEAS
    22. Nakao, Keisuke, 2016. "Transnational Policing: Preemption and Deterrence against Elusive Perpetrators," MPRA Paper 72676, University Library of Munich, Germany.
    23. Keisuke Hattori, 2015. "Within-group cooperation and between-group externalities in the provision of public goods," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 22(2), pages 252-273, April.
    24. Khusrav Gaibulloev & Todd Sandler, 2008. "The Impact of Terrorism and Conflicts on Growth in Asia, 1970–2004," Working Papers id:1789, eSocialSciences.

    More about this item

    JEL classification:

    • H40 - Public Economics - - Publicly Provided Goods - - - General
    • D62 - Microeconomics - - Welfare Economics - - - Externalities

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