Part 2: An economic Policy for dealing with terrorism( spl cross border terrorism)

we will be explaining much of the remaining parts of this article series by taking certain concepts from economics and modifying it for our purpose. economics based argument for terrorism is important and may be even central because costs, resources and benefits are involved for all parties and like most agents in economy, changing costs and benefits ought to alter their behaviours /response.

While mathematical formulation is not necessary to present some of the arguments, it may be helpful. To understand various aspects of terrorism and counter terrorism and implication for policy we will be introducing certain hypothesis ( apart from the central one mentioned in previous article- that is terrorism is just a low cost war for Pakistan's de facto rulers).

Following concepts will be used as guide to understanding some policy options
1.Production function ( and isoquants or our variation the "iso damage" curves)
2.objective function of terrorism/terrorist org.
3. implication of fixed and variable costs
4. Probability function

to be continued