The Economics of Terrorism and Counter-Terrorism: A Survey (Part II)

65 Pages Posted: 22 Sep 2010

See all articles by Friedrich Schneider

Friedrich Schneider

Johannes Kepler University Linz - Department of Economics; CESifo (Center for Economic Studies and Ifo Institute for Economic Research); Institute for the Study of Labor (IZA)

Tilman Brück

IGZ - Leibniz Institute of Vegetable and Ornamental Crops; ISDC - International Security and Development Center; IZA Institute of Labor Economics

Daniel Meierrieks

WZB Berlin Social Science Center

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Date Written: August 1, 2010

Abstract

This survey provides an in-depth analysis of existing research on the economic analysis of terrorism and counter-terrorist measures. First the existing evidence on the causes of terrorism is analyzed, then we consider the evidence of the consequences of terrorism and we demonstrate why it is important to regarding of the issue of counter-terrorism policy. Moreover the survey presents the existing knowledge on the interrelation between the economy and the issue of security and it incorporates analysis the level of knowledge about the causal chains between security and the economy. Also it focuses on perspective and methodologies from the discipline of economics but also refers to research from related disciplines (sociology, political science). It also assembles the knowledge on the impact of terrorism on the economy as reflected in macro-economic variables and its impact on specific sectors. Furthermore it assesses how potential an actual terrorist event determine consumer and producer behaviour, public policy, as well as terrorist responses to these policies. Finally a European perspective on the terrorism security annexes is discussed and here we analyze the causes of terrorism in Europe.

Keywords: risk, insecurity, survey, terrorism, counter-terrorism, security economics

JEL Classification: K42, H56, O17

Suggested Citation

Schneider, Friedrich G. and Brück, Tilman and Meierrieks, Daniel, The Economics of Terrorism and Counter-Terrorism: A Survey (Part II) (August 1, 2010). DIW Berlin Discussion Paper No. 1050, Available at SSRN: https://ssrn.com/abstract=1679770 or http://dx.doi.org/10.2139/ssrn.1679770

Friedrich G. Schneider (Contact Author)

Johannes Kepler University Linz - Department of Economics ( email )

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CESifo (Center for Economic Studies and Ifo Institute for Economic Research)

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Institute for the Study of Labor (IZA)

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Tilman Brück

IGZ - Leibniz Institute of Vegetable and Ornamental Crops ( email )

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Germany

HOME PAGE: http://www.igzev.de

ISDC - International Security and Development Center ( email )

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IZA Institute of Labor Economics

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Bonn, D-53072
Germany

Daniel Meierrieks

WZB Berlin Social Science Center ( email )

Reichpietschufer
50
Berlin, D-10785
Germany

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