How does the Economy Matter for Terrorism

Terrorist movements and suicide terrorists can be found in different societies and among many religions. History is full with examples. Martyrdom is a phenomenon known from early Christhood as a survival strategy against the oppressive Roman state power as well as today’s holy warriors with Islam faith. There were always people, who preferred to die instead of giving up their religion and/or political preferences for a particular way of living. This paper develops a new and original look on the troubling phenomenon of terrorism with the eyes of economics. The main question is to understand why terrorist groups exist at all and why they find enough material support to function actively. The authors argue that missing exit options are a important element in this respect.