This paper finds that political freedom has a significant and non-linear effect on domestic terrorism, but this effect is not significant in the case of transnational terrorism. Some of our other novel findings are that while geography and fractionalization may limit a county’s ability to curb terrorism, the presence of strong legal institutions deters it. JEL classification codes: D74, H56

This paper indicates how economic analysis can be applied for enlightened policy making with respect to transnational terrorism. Both theoretical tools (e.g., game theory and utilitymaximizing models) and empirical techniques (e.g., time series and spectral analysis) are used to put modern-day terrorism into perspective and to suggest policy responses. From hostage negotiations to the installat...

The post-9/11 war against terrorism has increased international attention to illicit drug business as a source of terrorist financing. For politicians and the media, the contentious term narcoterrorism has become fashionable. While the term implies a full merger between terrorism and drug business, the interrelationship between them is more accurately described in terms of linkages. As terroris...

In this work we attempt to develop a game theoretic model that can indicate the nuances of strategic investments in the face of possible cyber terrorist attacks. First, we briefly review the literature on terrorism. Second, we identify the „cyber‟ factors in terrorism, and how this new mode of attack alters the general scenario. Then, beginning with a naïve counter terrorism model, we increment...