The Economic Repercussions of Terrorism

The Economic Repercussions of Terrorism offers a theoretical overview of the economics of terrorism and provides a detailed evaluation of the costs of terrorist attacks, focusing in particular on the Madrid bombings of 2004, but also including comparisons with 9/11 and the London bombings of 7/7.

Divided into three parts, Part One offers a theoretical overview of the economics of terrorism including an analysis of the roots of terrorism, terrorist financing, the economic consequences of terrorism, and the predatory war economy. Part Two provides an in-depth analysis of the direct and indirect economic costs of terrorist attacks, looking at the security and defence responses, and offering industry sector analyses. Part Three explores the 'other costs' of terrorism, such as the impact of attacks on a government's popularity, and the possibility that terrorists use 'inside information' on attacks to play the stock market.

Professor Mikel Buesa is Professor of Applied Economics at the Complutense University of Madrid (UCM) and Head of the Chair of the Economics of Terrorism. He is widely published on the subject of terrorism and the economy and is president of two Spanish civic organizations devoted to promotion of intellectual and political work on counter-terrorism. Professor Thomas Baumert is Professor of Economics at the Catholic University of Valencia and Vice-Dean of the Faculty of Economics and Business Studies. His research areas include the economics of terrorism, especially on the impact of terrorist attacks on financial markets.