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External Sponsorship and Counter-Terrorism

Author

Listed:
  • Bhan, Aditya
  • Kabiraj, Tarun

Abstract

We consider interaction of two terror outfits and study possible counter-terrorism (CT) measures, both in the absence and presence of external terror finance. In our paper, external sponsorship with proportional allocation rule, induces strategic interaction and incentivizes more attacks. We provide a theoretical foundation for the ubiquity of defensive counter-terrorism (CT) versus the limited applicability of offensive measures and confidence-building measures (CBMs). Curtailing external sponsorship is always effective in inhibiting terror activity. In fact, targeting external funding may be the most effective CT tool if terror activity is sufficiently low. While CBMs may be more effective in the absence of external sponsorship, defensive CT may be preferable in its presence. However, CBMs may not be as effective in the presence of external sponsorship, as in its absence.

Suggested Citation

  • Bhan, Aditya & Kabiraj, Tarun, 2018. "External Sponsorship and Counter-Terrorism," MPRA Paper 98361, University Library of Munich, Germany, revised 31 Dec 2019.
    • Handle: RePEc:pra:mprapa:98361
    as

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    References listed on IDEAS

    as
    1. Kevin Siqueira & Todd Sandler, 2006. "Terrorists versus the Government," Journal of Conflict Resolution, Peace Science Society (International), vol. 50(6), pages 878-898, December.
    2. Todd Sandler & Kevin Siqueira, 2006. "Global terrorism: deterrence versus pre‐emption," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 39(4), pages 1370-1387, November.
    3. Dixit, Avinash K, 1987. "Strategic Behavior in Contests," American Economic Review, American Economic Association, vol. 77(5), pages 891-898, December.
    4. Arce, Daniel G. & Sandler, Todd, 2007. "Terrorist Signalling and the Value of Intelligence," British Journal of Political Science, Cambridge University Press, vol. 37(4), pages 573-586, October.
    5. Todd Sandler, 2005. "Collective versus unilateral responses to terrorism," Public Choice, Springer, vol. 124(1), pages 75-93, July.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Terror outfit; counter-terrorism; external sponsorship; defensive; offensive and confidence building measures.;
    All these keywords.

    JEL classification:

    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • F52 - International Economics - - International Relations, National Security, and International Political Economy - - - National Security; Economic Nationalism
    • H89 - Public Economics - - Miscellaneous Issues - - - Other

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