Terrorism and the State

WZB Markets and Politics Working Paper No. FS IV 02 – 15

23 Pages Posted: 22 Aug 2011

See all articles by Kai A. Konrad

Kai A. Konrad

Max Planck Institute for Tax Law and Public Finance; Centre for Economic Policy Research (CEPR); CESifo (Center for Economic Studies and Ifo Institute for Economic Research); IZA Institute of Labor Economics

Date Written: September 22, 2002

Abstract

This paper considers terrorism as an extortion activity. It uses tools from the theory of extortion and from conflict theory to describe how terrorism works, why terrorism is a persistent phenomenon, why terrorism is a violent phenomenon, and how retaliation affects the outcome. The analysis highlights the importance of information aspects and discusses some aspects of the organizational design.

Keywords: Terrorism, extortion, credibility, retaliation, Ismaili

JEL Classification: C72, D72, D74

Suggested Citation

Konrad, Kai A., Terrorism and the State (September 22, 2002). WZB Markets and Politics Working Paper No. FS IV 02 – 15. Available at SSRN: https://ssrn.com/abstract=1914364 or http://dx.doi.org/10.2139/ssrn.1914364

Kai A. Konrad (Contact Author)

Max Planck Institute for Tax Law and Public Finance ( email )

Marstallplatz 1
Munich, 80539
Germany

HOME PAGE: http://www.tax.mpg.de/en/pub/home.cfm

Centre for Economic Policy Research (CEPR)

90-98 Goswell Road
London, EC1V 7RR
United Kingdom

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

Poschinger Str. 5
Munich, 81679
Germany

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, 53072
Germany

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