DEFENSIVE COUNTERTERRORISM MEASURES AND DOMESTIC POLITICS

Unlike most of the literature, this paper includes domestic political considerations in which two countries must decide defensive countermeasures against a common terrorist threat. A delegation problem arises as voters strategically choose a policymaker whose preferences differ from their own. As a consequence, countries limit the presumed oversupply of defensive countermeasures. Thus, the inclusion of domestic politics gives a new perspective on counterterrorism. The timing of elections is also shown to make a difference.