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This paper presents a perspective on the application of theoretical and empirical methods to the study of domestic and transnational terrorism. The use of such methods can lead to informed policy making. On the theoretical side, both choice-theoretic and game-theoretic methods are examined. For empirical applications, the paper focuses on the study of trend, cycles, and forecasting. Additionally, the use of intervention analysis in various forms is reviewed with to regards to evaluating policy effectiveness and quantifying the economic impact of terrorism. Although this paper is not intended as a literature review, some key studies are highlighted for readers to pursue in greater depth.
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Sandler et al. (2007) studied this question.
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