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Using the Beveridge & Nelson decomposition of economic time series for pointing out the occurrence of terrorist attacks

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Author Info
Gómez-Sorzano, Gustavo

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Abstract

This paper continues my research program on violence and terrorism started 15 years ago. It presents in the first part through empirical exercises, the suitability of The Beveridge and Nelson decomposition of economic time series for pointing out the occurrence of terrorist attacks. It presents the simulation results of the hypothetical case of U.S., and Colombia experiencing, additional, and first three terrorist attacks similar to 9/11, 2001: for the U.S. additional attacks are simulated occurring in 1996, and 1998 with 24,950, and 61,516 casualties respectively; while for Colombia three attacks are artificially constructed independently in 1993 with 3,000 casualties, and 2001 with alternatives scenarios of 3,000 and 4,299 casualties. In the second part, while the model for terrorist attacks in U.S. soil is developed, and knowing that the geo-political context of the war in Iraq is different, Its objective, is to use the experience from Colombia to help policy, and decision makers understand the probable outcomes and implications of decisions taken today in regards to the war in Iraq. It uses the terrorist murder and attacks indicator from 1946 to 2001 for Colombia that assumes a 9/11 in Colombia killing 3,000 civilians, and that as its consequence the Colombian army started a strong confrontation against the enemy as the U.S did at that time. This indicator is used as dependent variable to re-estimate the model for cyclical terrorist murder for Colombia (Gómez-Sorzano 2006B, http://mpra.ub.uni-muenchen.de/539/01/MPRA_paper_539.pdf) using it, for sensitivity analysis scenarios including troop deployment decisions identical to those already taken by the U.S. during the war in Iraq. The last section concludes showing dynamically how at this point, moderate troop withdrawals and disarmament, will reduce both the intensity of the conflict and the estimated terrorist murder and attacks indicator for the U.S.

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Publisher Info
Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 3388.

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Date of creation: 24 Dec 2006
Date of revision: 22 Mar 2007
Handle: RePEc:pra:mprapa:3388

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Related research
Keywords: United States Colombia cyclical terrorist murder cyclical terrorist murder and attacks indicator terrorist murder and attacks index terrorist murder and attacks signal model of cyclical terrorist murder for Colombia model for terrorist attacks in U.S. soil.

Find related papers by JEL classification:
O51 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - U.S.; Canada
K14 - Law and Economics - - Basic Areas of Law - - - Criminal Law
N42 - Economic History - - Government, War, Law, and Regulation - - - U.S.; Canada: 1913-
O54 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean
D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War
N46 - Economic History - - Government, War, Law, and Regulation - - - Latin America; Caribbean
C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models
D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances
P10 - Economic Systems - - Capitalist Systems - - - General
O57 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law

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References listed on IDEAS
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.:
  1. John Y. Campbell & Pierre Perron, 1991. "Pitfalls and Opportunities: What Macroeconomists Should Know About Unit Roots," NBER Technical Working Papers 0100, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  2. Newbold, Paul, 1990. "Precise and efficient computation of the Beveridge-Nelson decomposition of economic time series," Journal of Monetary Economics, Elsevier, vol. 26(3), pages 453-457, December. [Downloadable!] (restricted)
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