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Utility maximisation, principle of rationality, scarcity of resources, substitutional and complementary effects of income and

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Introduction

Utility maximisation, substitutional/complementary effects, and cost versus benefit analyses, are underpinned by the principle of rationality, and used as theoretical constructs by neo-classical economists to analyse the behaviour of terrorists. Alan B. Krueger & Maleckova, utilise the principles of utility maximisation to delineate the participative mechanisms concerning terrorist behaviour. Todd Sandler, Walter Enders & Harvey E. Lapan, make use of "choice theoretic" paradigms, in which they posit the principles of rationality that terrorist groups are bound by. Walter Enders & Todd Sandler attempt to propose other "choice theoretical considerations". Substitutional and complementary effects of the various modes of terrorist attack are presented, pursuant to our understanding of terrorists/terrorist groups, being rational, goal-orientated agents. The purpose of this discussion is to outline the theoretical tools used by orthodox economists, the policy recommendations following those tools and comparing and contrasting whether the tools actually analyse the causes of terrorism. The paper by Krueger & Maleckova analyses the participative mechanisms involved in terrorist behaviour. Assuming parallels between crime and terrorism, they seek to utilise the studies of Gary Becker ("Crime and Punishment: An Economic Approach" - 1968) ...read more.

Middle

The three decisions to be made are: choosing "between terrorist and non-terrorist activities", depending on the relative costs; choosing "between different terrorist tactics", again dependent on substitutional possibilities and income; choosing "between different non-terrorist activities" (Enders, Sandler; 1993, 830). From this understand the authors go on to infer valuable information. They proposed four derivations (two of which have been addressed by the previous theoretical analyses, which I shall leave out): 1) If there were an increase/decrease in "price of one complementary event" then all the related complementary events would fall in number. 2) a rise in amount of resources would foment more terrorist activity & a fall in resources would stymie the frequency of terrorist activity - this is the case for normal goods (Enders, Sandler; 1993, 831). Drawing conclusions from their theoretical analyses of terrorist activities and terrorist related behaviour, Sandler, Lapan & Walters, outline some policy recommendations/suggestions. They suggest governments should closely examine the economic benefits Vs the economic costs of employing passive ("technology based barriers"; "fortifying potential targets" etc) and active ("retaliatory raids"; "pre-emptive strikes" etc) ...read more.

Conclusion

The latter is the direct or immediate causes of terrorism. A detailed account of the permissive and precipitative causes are accounted for in (Ross; 1993, 320-325). Ross adds that the cause of the "oppositional political" form of terrorism lies in structural, psychological and rational theories. The first two constructs are not touched upon by analyses focusing upon "choice theoretical" constructs. In conclusion Alan B. Krueger & Maleckova's work concludes with addressing the causes of terrorism, although these inferences are based on the analyses of empirical data, and not based on theoretical tools they outlined at the start of their paper. The literature by Quan Li & Drew1 analyses rational choice theories and the effects (but no causes) of global institutions on terrorist activity. It doesn't ascertain direct causes but rather outlines the effectiveness of various policies by using statistical data techniques. Reference List: 1. "Economic Analysis Can Help Fight International Terrorism"; Todd Sandler, Walter Enders & Harvey E. Lapan 2. "Education, Poverty and Terrorism: Is There a Causal Connection?"; Alan B. Krueger & Maleckova 3. "The Effectiveness of Antiterrorism Policies: A Vector-Autoregression-Intervention Analysis"; Todd Sandler, Walter Enders 4. "Structural Causes of Oppositional Political Terrorism: Towards a Causal Model"; Jefferey Ian Ross. 5. "The Causes of Terrorism"; Martha Crenshaw ?? ?? ?? ?? ...read more.

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