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On Rational Choice Theory And The Study Of Terrorism

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  • Charles Anderton
  • John Carter

Abstract

When rational choice theory is applied to the study of terrorism, it is important that attention be given to the derived principles of constrained utility maximization. Particularly useful is the Slutsky equation, which rigorously analyzes the quantity response in one activity to a price change in another. By directing attention to assumptions and/or information about compensated cross price elasticities, expenditure shares, and income elasticities, the Slutsky equation can provide critical guidance in both theoretical and empirical analysis.

Suggested Citation

  • Charles Anderton & John Carter, 2005. "On Rational Choice Theory And The Study Of Terrorism," Defence and Peace Economics, Taylor & Francis Journals, vol. 16(4), pages 275-282.
    • Handle: RePEc:taf:defpea:v:16:y:2005:i:4:p:275-282
    DOI: 10.1080/1024269052000344864
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    References listed on IDEAS

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    1. 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.
    2. Alan B. Krueger & Jitka Maleckova, 2003. "Education, Poverty and Terrorism: Is There a Causal Connection?," Journal of Economic Perspectives, American Economic Association, vol. 17(4), pages 119-144, Fall.
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    5. Enders, Walter & Sandler, Todd, 1995. "Terrorism: Theory and applications," Handbook of Defense Economics, in: Keith Hartley & Todd Sandler (ed.), Handbook of Defense Economics, edition 1, volume 1, chapter 9, pages 213-249, Elsevier.
    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.
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    Citations

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    Cited by:

    1. Friedrich Schneider & Tilman Brück & Daniel Meierrieks, 2010. "The Economics of Terrorism and Counter-Terrorism: A Survey (Part I)," Discussion Papers of DIW Berlin 1049, DIW Berlin, German Institute for Economic Research.
    2. Rehman, Faiz Ur & Nasir, Muhammad & Shahbaz, Muhammad, 2017. "What have we learned? Assessing the effectiveness of counterterrorism strategies in Pakistan," Economic Modelling, Elsevier, vol. 64(C), pages 487-495.
    3. Scoones David, 2013. "Winning Hearts and Minds: Public Good Provision in the Shadow of Insurgency," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 19(1), pages 17-31, April.
    4. Natasa Bilkic & Thomas Gries, 2014. "Uncertainty and Conflict Decision," Working Papers CIE 78, Paderborn University, CIE Center for International Economics.
    5. Coyne,Christopher J., 2020. "Defense, Peace, and War Economics," Cambridge Books, Cambridge University Press, number 9781108724036, October.
    6. Anderton,Charles H. & Carter,John R., 2009. "Principles of Conflict Economics," Cambridge Books, Cambridge University Press, number 9780521875578, December.
    7. Martin Gassebner & Richard Jong‐A‐Pin & Jochen O. Mierau, 2011. "Terrorism And Cabinet Duration," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 52(4), pages 1253-1270, November.
    8. Marek Loužek, 2009. "Ekonomie bezpečnosti - jsou teroristé racionální? [Economics of security - are terrorists rational?]," Politická ekonomie, Prague University of Economics and Business, vol. 2009(2), pages 177-193.
    9. Christopher Coyne, 2015. "Lobotomizing the defense brain," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 28(4), pages 371-396, December.
    10. Elu Juliet U. & Price Gregory N., 2012. "Remittances and the Financing of Terrorism In Sub-Saharan Africa: 1974 - 2006," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 18(1), pages 1-42, July.
    11. Charles H. Anderton & John R. Carter, 2006. "Applying Intermediate Microeconomics to Terrorism," The Journal of Economic Education, Taylor & Francis Journals, vol. 37(4), pages 442-458, October.
    12. Polyxeni, Kechagia & Theodore, Metaxas, 2019. "An empirical investigation of FDI inflows in developing economies: Terrorism as a determinant factor," The Journal of Economic Asymmetries, Elsevier, vol. 20(C).
    13. Siqueira, Kevin & Sandler, Todd, 2007. "Terrorist backlash, terrorism mitigation, and policy delegation," Journal of Public Economics, Elsevier, vol. 91(9), pages 1800-1815, September.
    14. Clem Tisdell & Keith Hartley, 2008. "Microeconomic Policy," Books, Edward Elgar Publishing, number 1029.
    15. Friedrich Schneider & Tilman Brück & Daniel Meierrieks, 2015. "The Economics Of Counterterrorism: A Survey," Journal of Economic Surveys, Wiley Blackwell, vol. 29(1), pages 131-157, February.
    16. Sayre Edward A, 2009. "Labor Market Conditions, Political Events, and Palestinian Suicide Bombings," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 15(1), pages 1-26, May.
    17. Redlin, Margarete & Gries, Thomas & Meierrieks, Daniel, 2014. "Oppressive Governments, US Closeness, and Anti-US Terrorism," VfS Annual Conference 2014 (Hamburg): Evidence-based Economic Policy 100588, Verein für Socialpolitik / German Economic Association.
    18. Peculiar M. Awa, 2021. "Family and Community Dynamics That Contribute to Female Involvement in Terrorist Activity in Nigeria," International Journal of Law and Public Administration, Redfame publishing, vol. 4(2), pages 44-55, December.
    19. Subhayu Bandyopadhyay & Todd Sandler, 2023. "The Trade-Offs of Counterterrorism Policies," Review, Federal Reserve Bank of St. Louis, vol. 105(3), pages 177-197, July.
    20. William F. Shughart, 2011. "Terrorism in Rational Choice Perspective," Chapters, in: Christopher J. Coyne & Rachel L. Mathers (ed.), The Handbook on the Political Economy of War, chapter 8, Edward Elgar Publishing.
    21. Ur Rehman Faiz, 2015. "The Spatial Analysis of Terrorism in Pakistan," Asian Journal of Law and Economics, De Gruyter, vol. 6(2), pages 125-165, October.

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