A Law and Economics Perspective on Terrorism
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. 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 incentives to reveal their type to law enforcement authorities.
Terrorism, Penalty enhancements, Communal liability, organized crime, Basic crime model, deterrence, incapacitation
128 Pub. Choice 147 (2006)