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A Law and Economics Perspective on Terrorism

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  • Francesco Parisi
  • Jonathan Klick
  • Nuno Garoupa

Abstract

This paper reviews the existing law and economics literature on crime, noting where various models might apply to the terror context. Specifically, it focuses on two strands of the literature, deterrence and incapacitation. Challenging the conventional application of the basic rational agent model of crime in the context of terrorism, it considers anti-terror measures enacted by different countries, highlighting how the details of the laws correspond to the insights from economic models of crime. In conclusion, the paper proposes an efficient sorting mechanism in which individuals will be provided with adequate incentives to reveal their type to law enforcement authorities.

Suggested Citation

  • Francesco Parisi & Jonathan Klick & Nuno Garoupa, 2006. "A Law and Economics Perspective on Terrorism," Working Papers 2006-09, FEDEA.
    • Handle: RePEc:fda:fdaddt:2006-09
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    Cited by:

    1. Karen Pittel & Dirk Rübbelke, 2011. "Characteristics of Terrorism," Chapters, in: Derek L. Braddon & Keith Hartley (ed.), Handbook on the Economics of Conflict, chapter 7, Edward Elgar Publishing.
    2. Mialon, Hugo M. & Mialon, Sue H. & Stinchcombe, Maxwell B., 2012. "Torture in counterterrorism: Agency incentives and slippery slopes," Journal of Public Economics, Elsevier, vol. 96(1), pages 33-41.
    3. Levan Elbakidze & Yanhong Jin, 2012. "Victim Countries of Transnational Terrorism: An Empirical Characteristics Analysis," Risk Analysis, John Wiley & Sons, vol. 32(12), pages 2152-2165, December.
    4. Ken Yahagi & Susumu Cato, 2023. "Strategic crackdown on organized crime by local governments," Economics of Governance, Springer, vol. 24(2), pages 237-257, June.
    5. Ken Yahagi, 2019. "Law enforcement with criminal organizations and endogenous collaboration," European Journal of Law and Economics, Springer, vol. 48(3), pages 351-363, December.
    6. Goel Rajeev K., 2020. "Do Weak Institutions Affect Recording of Terror Incidents? Evidence from the United States," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 26(1), pages 1-11, February.

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