Terrorism Shocks and Public Spending: Panel VAR Evidence from Europe
AbstractBased on a trivariate panel VAR and utilizing Generalized Impulse Responses, we explored the dynamic impacts of terrorism and crime risks on public order and safety spending across European countries during the period 1994-2006. Our findings suggest that both a shock in terrorism risk or in crime, significantly increase the subsequent trajectory of public order and safety spending. As a by-product we find that public spending is ineffective in reducing observed crime or terrorism risks.
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Bibliographic InfoPaper provided by DIW Berlin, German Institute for Economic Research in its series Economics of Security Working Paper Series with number 48.
Length: 27 p.
Date of creation: 2011
Date of revision:
Panel VAR; Public Order and Safety Spending; Terrorism Activity;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-05-30 (All new papers)
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