Abstract
ABSTRACT We assess the potential of economics to contribute to the understanding of terrorism. We argue that the economic approach portraying terrorists and law enforcement agents as rational actors yoked to other disciplines is a source of precise falsifiable causal hypotheses. Theoretical economics rooted in rational choice provides precisely falsifiable hypotheses. This falsifiability makes it easier to focus on identifying causal relationships, which is essential for sound policy advice. Economists have developed a multitude of rigorous tools for causal inference ranging from instrumental variables to machine learning, which are essential in typical situations of terrorism that are beset by endogeneity problems. However, neighboring disciplines are needed to provide a rich contextual analysis that allows the assessment of the external validity of the results rigorously derived by economic analyses. Ultimately, rigorous mathematical analysis is valid only if it can capture reality wholly and simply.
Published Version
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
