The Economics of Roadside Bombs
AbstractThe U.S. military has been criticized for its failure to stop the Iraqi insurgency’s use of improvised explosive devices (IEDs), which have caused most of the Coalition casualties. We use an instrumental variables approach to estimate the insurgent responses to U.S. military countermeasures. We find that the number of IED attacks (including unobserved attacks) goes up when attacks are made more costly to conduct, suggesting that IED attacks are inferior and may even be a Giffen good. A major benefit of IED countermeasures therefore comes in reducing non-IED attacks. Evaluations of the U.S. military’s $13 billion counter-IED effort have thus significantly understated its success.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Department of Economics, College of William and Mary in its series Working Papers with number 68.
Length: 22 pages
Date of creation: 11 Dec 2007
Date of revision:
Iraq War; Instrumental Variables; Substitution Effect; Inferior Goods; Giffen Behavior; Terrorism;
Find related papers by JEL classification:
- C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models
- D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances
- H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-12-19 (All new papers)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Efraim Benmelech & Claude Berrebi, 2007. "Attack Assignments in Terror Organizations and The Productivity of Suicide Bombers," NBER Working Papers 12910, National Bureau of Economic Research, Inc.
- Battalio, Raymond C & Kagel, John H & Kogut, Carl A, 1991. "Experimental Confirmation of the Existence of a Giffen Good," American Economic Review, American Economic Association, vol. 81(4), pages 961-70, September.
- David A. Jaeger & M. Daniele Paserman, 2005.
"Israel, the Palestinian Factions, and the Cycle of Violence,"
23, Department of Economics, College of William and Mary.
- David A. Jaeger & M. Daniele Paserman, 2006. "Israel, the Palestinian Factions, and the Cycle of Violence," American Economic Review, American Economic Association, vol. 96(2), pages 45-49, May.
- Jaeger, David A. & Paserman, Daniele, 2006. "Israel, the Palestinian Factions, and the Cycle of Violence," IZA Discussion Papers 1923, Institute for the Study of Labor (IZA).
- Jaeger, David A & Paserman, Marco Daniele, 2006. "Israel, the Palestinian Factions and the Cycle of Violence," CEPR Discussion Papers 5498, C.E.P.R. Discussion Papers.
- Robert T. Jensen & Nolan H. Miller, 2007. "Giffen Behavior: Theory and Evidence," NBER Working Papers 13243, National Bureau of Economic Research, Inc.
- Elliott, Graham & Rothenberg, Thomas J & Stock, James H, 1996.
"Efficient Tests for an Autoregressive Unit Root,"
Econometric Society, vol. 64(4), pages 813-36, July.
- Graham Elliott & Thomas J. Rothenberg & James H. Stock, 1992. "Efficient Tests for an Autoregressive Unit Root," NBER Technical Working Papers 0130, National Bureau of Economic Research, Inc.
- Tom Doan, . "ERSTEST: RATS procedure to perform Elliott-Rothenberg-Stock unit root tests," Statistical Software Components RTS00066, Boston College Department of Economics.
- Tom Doan, . "GLSDETREND: RATS procedure to perform local to unity GLS detrending," Statistical Software Components RTS00077, Boston College Department of Economics.
- Sandler, Todd & Enders, Walter, 2004. "An economic perspective on transnational terrorism," European Journal of Political Economy, Elsevier, vol. 20(2), pages 301-316, June.
- Hoy, Michael & Robson, Arthur J., 1981. "Insurance as a Giffen good," Economics Letters, Elsevier, vol. 8(1), pages 47-51.
- Jensen, Robert & Miller, Nolan, 2007. "Giffen Behavior: Theory and Evidence," Working Paper Series rwp07-030, Harvard University, John F. Kennedy School of Government.
- Radha Iyengar & Jonathan Monten & Matthew Hanson, 2011. "Building Peace: The Impact of Aid on the Labor Market for Insurgents," NBER Working Papers 17297, National Bureau of Economic Research, Inc.
- Blattman, Christopher & Miguel, Edward, 2009.
Center for International and Development Economics Research, Working Paper Series
qt90n356hs, Center for International and Development Economics Research, Institute for Business and Economic Research, UC Berkeley.
- Christopher Blattman & Edward Miguel, 2009. "Civil War: A Review of Fifty Years of Research," Working Papers id:2231, eSocialSciences.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Daifeng He) or (Alfredo Pereira).
If references are entirely missing, you can add them using this form.