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Designing Institutions to Deal with Terrorism in the United States


  • Martin S. Feldstein


The explosion in the 21st century of terrorist activities by Islamic radicals in the United States, Europe and Asia requires reforming the institutions for domestic counterterrorism (CT) and new international relations among individual national CT organizations. This paper discusses the institutional reforms for CT in the United States, focusing particularly on the changes in the FBI. These changes are compared with the way that the British CT activities of the MI5 and MI6 have evolved in response to terrorism in Britain. The paper also discusses the reasons why there is strong cooperation among the CT activities of all the major governments and with the United States in particular, even when those governments do not agree about military cooperation or about the use of economic sanctions.

Suggested Citation

  • Martin S. Feldstein, 2008. "Designing Institutions to Deal with Terrorism in the United States," NBER Working Papers 13729, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:13729
    Note: PE

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    References listed on IDEAS

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    Cited by:

    1. Charles Yuji Horioka, 2014. "The Life and Work of Martin Stuart ("Marty") Feldstein," ISER Discussion Paper 0905r, Institute of Social and Economic Research, Osaka University, revised Mar 2015.
    2. repec:dpr:wpaper:0905 is not listed on IDEAS

    More about this item

    JEL classification:

    • H1 - Public Economics - - Structure and Scope of Government
    • H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War

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