Terrorism, identity, psychology and defence economics

Abstract

That a dividing line has been drawn between economics and psychology is evident from a review of the most recent terrorism studies literature. The division is centred on the motivations of terrorism and the payoffs to terrorism. Psychology has generally been interested in motivations. Economics has generally been interested in payoffs. The objective of this paper is to show, by examining the psychologically important factor of 'identity', that it is very difficult to draw a clear dividing line between motivations and payoffs. Identity and self image are factors that motivate individuals to become terrorists but the gains and losses in identity and self image that result from engagement in terrorism are payoffs to terrorism. Factors that are important to the study of terrorism must sometimes be understood as both motivations and payoffs. The analysis of these factors requires the analytical frameworks of both economic science and psychology.