THREE STRATEGIES TO DEAL WITH TERRORISM

Authors

  • BRUNO S. FREY,

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      Institute for Empirical Research in Economics, University of Zurich, Zurich, Switzerland. This article was the 2007 Stan Kelly Memorial Lecture.

  • SIMON LUECHINGER

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      Institute for Empirical Research in Economics, University of Zurich, Zurich, Switzerland. This article was the 2007 Stan Kelly Memorial Lecture.


Abstract

Deterrence has been a crucial element in fighting terrorism. An economic analysis of terrorism also points to alternative and potentially superior policies. We suggest three policies that can well be integrated into existing constitutions of democratic and rule-based countries. Two policies are based on diminishing the benefits of committing terrorist acts for prospective terrorists. This can be done by decentralising various parts of society or by diverting attention from terrorists, once a terrorist act has been committed. A third policy is to raise the relative costs of terrorism by lowering the costs of non-violent means for pursuing political goals.

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