Economics of Terrorism and Counter-Terrorism Measures: History, Theory, and Evidence

This textbook presents a systematic study of terrorism from the  standpoint of economic analysis. Choosing the kind and level of  measures to counter terror is, to a large extent, an economic decision,  as counterterrorism (CT) measures and their side effects are costly.  This text, contains theoretical models that illustrate the economic  mechanisms of different types of CT measures. A vast array of empirical  studies and regularities are also presented.  

Some  chapters discuss in depth the empirical results in the literature as  well as the underlying statistical/econometric methodologies that go  beyond ordinary regression. General Appendix A provides an exposition of  the concept of compensating surplus and elements of the basic game  theory, to help the reader with an economics background recapitulate  micro theory concepts used in the book. General Appendix B lays out the  notions of hypothesis testing, regression and more advanced  statistical/econometric methods, so that the reader understands or at  least can have an intuitive idea of how the results are derived and what  they mean with some degree of inner comfort.  

Aimed  at students at the intermediate undergraduate and graduate levels, the  text requires knowledge of basic micro, first-order conditions of profit  or utility maximization and cost minimization, and statistical concepts  of hypothesis testing and regression. This textbook is intended for use  in courses in economics, political science, criminal justice, and  emergency management. Additionally, professionals working with national  security in government and non-governmental organizations may find it  useful.