surveyed and put in perspective. As economic consequences are only a part of the overall costs of terrorism, possible …

For a standard competitive trade model, the authors show that the incidence of terrorism in different nations can … affect the pattern of trade. Nations with a greater incidence of terrorism will export goods that are more immune to … terrorism-related disruptions, while importing more terrorism-impacted goods. In addition, terrorism can be welfare augmenting …

We present a standard trade model and show that terrorism can be trade inducing, starting from autarky. In addition …, terrorism can be shown to be welfare augmenting for a group of nations. Finally, we present some qualitative conditions that … identify when a nation's trade volume may rise (or fall) in response to a greater incidence of terrorism. Our trade and welfare …

underprovision, raise overall counterterrorism, and reduce terrorism. Welfare decreases in the politically influenced country but …