The economics of terrorism in a nutshell

Answers from the dismal science

This is an archived blog post from The Acorn.

Hatred can be analysed as any other good, and the presence of hatred creates a demand for terrorist acts, concludes Silviu Dochia in the Corner Solution, citing works by Harvard and GMU scholars.

An additional point that the Dochia could include is the role of states like Saudi Arabia and Pakistan in creating, incubating and subsidising ‘terror firms’. Not just that, these states supply hatred, lower entry barriers and subsidise ‘terror firms’ who can then export their products. When the export subsidies are removed, the firms begin concentrating on the domestic market. This may call for states to both raise tariff and non-tariff barriers against the import of terrorism and bear upon other states to drop their export subsidies.

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