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Collective Action and Transnational Terrorism

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  • Todd Sandler

Abstract

This paper applies modern tools of economic analysis to examine the nature of transnational terrorism and associated collective action concerns that arise in the aftermath of September 11. Throughout the paper, the strategic interaction between rational terrorists and targeted governments are underscored. Networked terrorists draw on their collective strengths to exploit a maximum advantage over targeted governments’ inadequate and uncoordinated responses. A wide range of issues are explored including governments’ deterrence races, undersupplied pre‐emption, and suicidal attacks. Myriad substitutions by terrorists limit government anti‐terrorism policy effectiveness. A host of policy responses are evaluated in light of economic analysis and past econometric evidence.

Suggested Citation

  • Todd Sandler, 2003. "Collective Action and Transnational Terrorism," The World Economy, Wiley Blackwell, vol. 26(6), pages 779-802, June.
    • Handle: RePEc:bla:worlde:v:26:y:2003:i:6:p:779-802
    DOI: 10.1111/1467-9701.00548
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    References listed on IDEAS

    as
    1. Eric Iksoon Im & Jon Cauley & Todd Sandler, 1987. "Cycles and Substitutions in Terrorist Activities: A Spectral Approach," Kyklos, Wiley Blackwell, vol. 40(2), pages 238-255, May.
    2. Lapan, Harvey E & Sandler, Todd, 1988. "To Bargain or Not to Bargain: That Is the Question," American Economic Review, American Economic Association, vol. 78(2), pages 16-21, May.
    3. repec:bla:kyklos:v:49:y:1996:i:3:p:331-52 is not listed on IDEAS
    4. Walter Enders & Todd Sandler, 1996. "Terrorism and Foreign Direct Investment in Spain and Greece," Kyklos, Wiley Blackwell, vol. 49(3), pages 331-352, August.
    5. repec:bla:kyklos:v:40:y:1987:i:2:p:238-55 is not listed on IDEAS
    6. Enders, Walter & Sandler, Todd, 2000. "Is Transnational Terrorism Becoming More Threatening? A Time-Series Investigation," Staff General Research Papers Archive 1823, Iowa State University, Department of Economics.
    7. Sandler,Todd & Hartley,Keith, 1995. "The Economics of Defense," Cambridge Books, Cambridge University Press, number 9780521447287, September.
    8. Walter Enders & Todd Sandler, 2000. "Is Transnational Terrorism Becoming More Threatening?," Journal of Conflict Resolution, Peace Science Society (International), vol. 44(3), pages 307-332, June.
    9. Alan B. Krueger & Jitka Maleckova, 2002. "Education, Poverty, Political Violence and Terrorism: Is There a Causal Connection?," NBER Working Papers 9074, National Bureau of Economic Research, Inc.
    10. repec:pri:rpdevs:krueger_maleckova_education_poverty_political.pdf is not listed on IDEAS
    11. repec:pri:rpdevs:krueger_maleckova_education_poverty_political is not listed on IDEAS
    12. repec:bla:kyklos:v:45:y:1992:i:4:p:531-54 is not listed on IDEAS
    13. Keith Hartley & Todd Sandler (ed.), 1995. "Handbook of Defense Economics," Handbook of Defense Economics, Elsevier, edition 1, volume 1, number 1.
    14. Walter Enders & Todd Sandler & Gerald F. Parise, 1992. "An Econometric Analysis of the Impact of Terrorism on Tourism," Kyklos, Wiley Blackwell, vol. 45(4), pages 531-554, November.
    15. Enders, Walter & Sandler, Todd, 1993. "The Effectiveness of Antiterrorism Policies: A Vector-Autoregression-Intervention Analysis," American Political Science Review, Cambridge University Press, vol. 87(4), pages 829-844, December.
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