The Political Economy of Terrorism, first published in 2006, presents a widely accessible approach to the study of terrorism that combines economic methods with political analysis and realities. It applies economic methodology - theoretical and empirical - with political analysis to the study of domestic and transnational terrorism. Included in the treatment are historical aspects of the phenomenon, a discussion of watershed events, the rise of modern-day terrorism, examination of current trends, the dilemma of liberal democracies, evaluation of counterterrorism, and analysis of hostage incidents. Rational-actor models of terrorist and government behavior and game-theoretic analysis are presented for readers with no prior theoretical training. Where relevant, the authors display graphs using the data set International Terrorism: Attributes of Terrorist Events (ITERATE), and other data sets.
• Using simple economic models/statistical analyses, book provides unique perspective on study of terrorism • To better understand terrorism and counter its threat, book uses insights from history, sociology, law, psychology, statistics, and economics • Authors present data on terrorist events over time to bolster investigation of numerous watershed incidents
1. Terrorism: an introduction; 2. The dilemma of liberal democracies; 3. Statistical studies and terrorist behavior; 4. Counterterrorism; 5. Transference; 6. International cooperation: dilemma and inhibitors; 7. Hostage taking; 8. After 9/11; 9. Economic impact of transnational terrorism; 10. Homeland security; 11. The future of terrorism.
'the work is written by two of the most prominent contemporary defense economists … It thus offers a valuable account of the state of the art of political economy approaches to the study of this highly topical phenomenon … this is a very sober, informative, and valuable contribution to the rapidly growing literature on terrorism as well as to peace and security economics.' www.epsjournal.org.uk