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Understanding Terrorism from an Economic perspective

  • Haldar, Tanushree
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    Terrorism has emerged as a major threat to the contemporary society. Nation States are reliant on their counter-terrorism laws for checking terrorism and deterring terrorists. To understand the effectiveness of these counter terrorism laws, it is important to first understand the behaviour of terrorists, so as to comprehend what actions can dissuade terrorist’s behaviour and decision to propagate violence. This paper will first look at behaviour of terrorist in decision making from an economic perspective, then will try to explore if there are any economic determinant of terrorism and finally, since the cost of terrorism is huge in terms of life, property etc, will discuss the status of counter-terrorism legislations in India. In the study it has been shown that terrorists are rational in decision making. It has also been found that economic determinants are not significant in determining terrorism; however, to a certain extent education does have a positive relation with participation in terrorism. Terrorism has huge cost, and hence it is essential to have counter-terrorist legislations. These legislations provides power to the state to deny operating space to terrorists and their supporters, deter them from carrying out terrorist acts, ensure the basic rights of the people, and uphold the Fundamental Rights enshrined in the Constitution.

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    File URL: http://mpra.ub.uni-muenchen.de/47152/1/MPRA_paper_47152.pdf
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    Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 47152.

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    Date of creation: 24 May 2013
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    Handle: RePEc:pra:mprapa:47152
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    1. Sandler, Todd & Enders, Walter, 2004. "An economic perspective on transnational terrorism," European Journal of Political Economy, Elsevier, vol. 20(2), pages 301-316, June.
    2. Alan Krueger & Jorn-Steffen Pischke, 1996. "A Statistical Analysis of Crime Against Foreigners in Unified Germany," Working Papers 737, Princeton University, Department of Economics, Industrial Relations Section..
    3. S. Brock Blomberg & Gregory D. Hess & Akila Weerapana, 2004. "An Economic Model of Terrorism," Conflict Management and Peace Science, Peace Science Society (International), vol. 21(1), pages 17-28, February.
    4. Efraim Benmelech & Claude Berrebi, 2007. "Human Capital and the Productivity of Suicide Bombers," Journal of Economic Perspectives, American Economic Association, vol. 21(3), pages 223-238, Summer.
    5. Alan B. Krueger & Jitka Maleckova, 2003. "Education, Poverty and Terrorism: Is There a Causal Connection?," Journal of Economic Perspectives, American Economic Association, vol. 17(4), pages 119-144, Fall.
    6. Abadie, Alberto, 2004. "Poverty, Political Freedom, and the Roots of Terrorism," Working Paper Series rwp04-043, Harvard University, John F. Kennedy School of Government.
    7. Cauley, Jon & Im, Eric Iksoon, 1988. "Intervention Policy Analysis of Skyjackings and Other Terrorist Incidents," American Economic Review, American Economic Association, vol. 78(2), pages 27-31, May.
    8. Bryan Caplan, 2006. "Terrorism: The relevance of the rational choice model," Public Choice, Springer, vol. 128(1), pages 91-107, July.
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