The economics of criminal and terrorist behaviour

The economics of criminal and terrorist behaviour

Economic scholars have analyzed:

• The economics of criminal behaviour and
• The economics of terrorist behaviour.

Economic theory is based on the assumption that criminals and terrorists (even suicidal bombers) behave like “rational” economic agents, which implies that they face a well defined set of preferences, and will select their preferred choice of action to maximize their utility within a given resource restraint (Enders and Sandler, 2006) . Consequently, economic theory predicts that a change in the relative price (due to for example security measures) will result in a shift of criminal and terrorist action towards the relatively cheaper activity (legal or not legal).

Related subjects

The economics of terrorist and criminal behaviour relates to:

1. The economic impacs of urban planning
2. The economic impacts of security threats (crime & terrorism)
3. The economic impacts of security measures

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