Economics of terrorism

Part of the behavioral sciences
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The economics of terrorism is a branch of economics dedicated to the study of terrorism. It involves using the tools of economic analysis to analyse issues related to terrorism, such as the link between education, poverty and terrorism, the effect of macroeconomic conditions on the frequency and quality of terrorism, the economic costs of terrorism, and the economics of counter-terrorism.^[1] The field also extends to the political economy of terrorism, which seeks to answer questions on the effect of terrorism on voter preferences and party politics.

Research has extensively examined the relationship between economics and terrorism, but both scholars and policy makers have often struggled to reach a consensus on the role that economics plays in causing terrorism, and how exactly economic considerations could prove useful in understanding and combatting terrorism.^[2]