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Appeasing Nihilists? Some Economic Thoughts on Reducing Terrorist Activity

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  • Jan Schnellenbach

    (Philipps-University Marburg)

Abstract

Recent contributions to the economics of terrorism have given contradicting recommendations for campaigning against terrorism, from the proposal to deprive terrorists of their resources to the proposal of raising the opportunity costs of terrorism by increasing the wealth of the affected regions. Within a simple framework which differentiates between the decision to become an active terrorist and the decision to support terrorists and which allows for reciprocal reactions to anti- terrorism policies, it is argued here that undifferentiated deterrence may indeed backfire, but so may an increase of the opportunity costs of terrorism. A very targeted anti-terrorism policy aimed only at active terrorists would then be the most reasonable remaining approach.

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  • Jan Schnellenbach, 2005. "Appeasing Nihilists? Some Economic Thoughts on Reducing Terrorist Activity," Law and Economics 0507001, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwple:0507001
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    Cited by:

    1. Fischer, Justina AV, 2010. "Immigration, integration and terrorism: is there a clash of cultures?," MPRA Paper 27690, University Library of Munich, Germany.
    2. Axel Dreher & Justina Fischer, 2008. "Decentralization as a disincentive for transnational terror? System stability versus government efficiency: an empirical test," TWI Research Paper Series 41, Thurgauer Wirtschaftsinstitut, Universität Konstanz.
    3. Axel Dreher & Justina A.V. Fischer, 2008. "Decentralization as a Disincentive for Transnational Terror?," KOF Working papers 08-185, KOF Swiss Economic Institute, ETH Zurich.
    4. Dreher, Axel & Fischer, Justina AV, 2007. "Decentralization as a disincentive for transnational terror? An empirical test," SSE/EFI Working Paper Series in Economics and Finance 686, Stockholm School of Economics.
    5. Axel Dreher & Justina A. V. Fischer, 2010. "Government Decentralization As A Disincentive For Transnational Terror? An Empirical Analysis," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 51(4), pages 981-1002, November.

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    JEL classification:

    • H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War

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