THE POLITICAL ECONOMY OF TERRORISM, SECOND EDITIONThe Political Economy of Terrorism, Second Edition, presents a widely accessi ble political economy approach to the study of terrorism. It applies economic methodology - theoretical and empirical - combined with political analysis and realities to the study of domestic and transnational terrorism. In so doing, the book provides both a qualitative and quantitative investigation of terrorism in a balanced, up-to-date presentation that informs students, policymakers, research ers, and the general reader of the current state of knowledge. Included are histor ical aspects, a discussion of watershed events, the rise of modern-day terrorism, examination of current trends, the dilemma of liberal democracies, evaluation of counterterrorism, analysis of hostage incidents, and much more. The new edition expands the coverage of each chapter, adds a new chapter on terrorist network structures and organization, accounts for changes in the Department of Homeland Security and the USA PATRIOT Act, and discusses insurance against terrorism. Rational-actor models of terrorist and government behavior and gametheoretic analysis are presented for readers with no prior theoretical train ing. Where relevant, the authors display graphs using data from International Terrorism: Attributes of Terrorist Events (ITERATE), the Global Terrorism Database (GTD), and other public-access data sets.Walter Enders holds the Bidgood Chair of Economics and Finance at the University of Alabama. He has published numerous research articles in such journals as the Review of Economics and Statistics, Quarterly Journal of Economics, American Economic Review, Journal of Economics Literature, Journal of Business and Economic Statistics, and the American Political Science Review. He is on the editorial board of the Journal of Conflict Resolution. Dr. Enders's Applied Econometric Time-Series is a leading book in the field. In 2003, he was the corecipient with Todd Sandler of the National Academy of Sciences Award for Behavioral Research Relevant to the Prevention of Nuclear War.Todd Sandler is the Vibhooti Shukla Professor of Economics and Political Economy at the University of Texas at Dallas. He has written or edited twenty one books, including Global Collective Action; Economic Concepts for the Social Sciences; The Political Economy of NATO (with Keith Hartley); and Global Challenges: An Approach to Economic, Political, and Environmental Problems, as well as more than two hundred journal articles in economics and political science. His work on terrorism dates back to 1983.Professors Enders and Sandler coauthored the first edition of this title.