The Political Economy of Terrorism, first published in 2006, presents a widely accessible approach to the study of terrorism that combines economic methods with political analysis and realities. It applies economic methodology - theoretical and empirical - with political analysis to the study of domestic and transnational terrorism. Included in the treatment are historical aspects of the phenomenon, a discussion of watershed events, the rise of modern-day terrorism, examination of current trends, the dilemma of liberal democracies, evaluation of counterterrorism, and analysis of hostage incidents. Rational-actor models of terrorist and government behavior and game-theoretic analysis are presented for readers with no prior theoretical training. Where relevant, the authors display graphs using the data set International Terrorism: Attributes of Terrorist Events (ITERATE), and other data sets.
Walter Enders holds the Bodgood Chair of Economics and Finance at the University of Alabama. He has published numerous research articles in eminent journals such as the Review of Economics and Statistics, Quarterly Journal of Economics, American Economic Review, Journal of Economics Literature, Journal of Business and Economic Statistics, and the American Political Science Review. Professor Enders's Applied Econometric Time-Series is a leading book in the field. He is a current holder (along with Todd Sandler) of the National Academy of Sciences' Estes Award for Behavioral Research Relevant to the Prevention of Nuclear War for their pathbreaking work on understanding terrorism.
'the work is written by two of the most prominent contemporary defense economists … It thus offers a valuable account of the state of the art of political economy approaches to the study of this highly topical phenomenon … this is a very sober, informative, and valuable contribution to the rapidly growing literature on terrorism as well as to peace and security economics.' www.epsjournal.org.uk