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The B.E. Journal of Theoretical Economics

Editor-in-Chief: Schipper, Burkhard

Ed. by Fong, Yuk-fai / Peeters, Ronald / Puzzello , Daniela / Rivas, Javier / Wenzelburger, Jan

IMPACT FACTOR 2017: 0.220
5-year IMPACT FACTOR: 0.328

CiteScore 2017: 0.28

SCImago Journal Rank (SJR) 2017: 0.181
Source Normalized Impact per Paper (SNIP) 2017: 0.459

Mathematical Citation Quotient (MCQ) 2017: 0.09

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A Strategic Analysis of Terrorist Activity and Counter-Terrorism Policies

Satya P Das / Sajal Lahiri
Published Online: 2006-06-19 | DOI: https://doi.org/10.2202/1534-598X.1295

This paper develops a model of terrorist activity and behavior. A terrorist organization chooses the size and the number of attacks. The defending state chooses the level of security-deterrence measures. The equilibrium sequence is such that the Organization moves first, followed by the State. A defensive policy such as an innovation in security-deterrence technology tends to reduce the size of attacks but increase their number, while an offensive policy, lowering the total "strike" or "output" potential of a terrorist organization, has opposite effects. Both policies reduce the expected damage from terror. An individual's decision to become a terrorist or a financier is also modeled, leading to endogenous supplies of terrorists and funds. The effects of terrorist-flushing measures, provisions to curb the flow of funds to terrorist organizations and income-enhancing policies are evaluated by taking into account their "supply-side" effects.

Keywords: terrorism; counter-terrorism policies; security-deterrence measures; puppy dog strategy; terrorist-flushing measures

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Published Online: 2006-06-19

Citation Information: Topics in Theoretical Economics, Volume 6, Issue 1, Pages 1–28, ISSN (Online) 1534-598X, DOI: https://doi.org/10.2202/1534-598X.1295.

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