By Anne R. Bradley , Christopher J. Coyne and Abigail R. Hall

Abstract: This Element explores the topics of terrorism, counterterrorism, and the US government’s war on terror following the September 11, 2001 terror attacks. It draws on insights from Austrian and public choice economics. First, it discusses the foundations of the economics of terrorism, emphasizing that the behaviors of terrorists and counterterrorists are purposeful and goal-oriented. It then considers the economics of counterterrorism policies and the importance of institutional change for reducing demand for terrorism. Next, it focuses on three dilemmas facing liberal societies in relation to counterterrorism efforts. The Element then provides an assessment of the US government’s war on terror. It discusses the origins of the war, whether it can be judged a success or a failure, and some of the main effects both abroad and within the United States. The Element concludes by putting forward several areas for future research.

NY. Cambridge University Press. 2023. 85p.