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Global Threats and the Domestic Struggle for Power

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  • Michelle R. Garfinkel

    (University of California-Irvine)

Abstract

This paper considers an economy where groups compete in a contest for power to redistribute future income in their favor. An increased external threat of terrorism--either an increase in the likelihood of a successful terrorist attack or a greater loss of income in the event of a successful attack--would tend to reduce the expected value of the contest prize and thus lessen the severity of the conflict at home. However, unless the marginal return from guarding against terrorism is not too large or diminishes at a sufficiently fast rate, such a shock could imply, in equilibrium, both a greater sense of security among the groups against external threats and a greater conflict between them in the domestic struggle for power.

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File URL: http://128.118.178.162/eps/pe/papers/0306/0306001.pdf
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Bibliographic Info

Paper provided by EconWPA in its series Public Economics with number 0306001.

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Length: 19 pages
Date of creation: 05 Jun 2003
Date of revision:
Handle: RePEc:wpa:wuwppe:0306001

Note: Type of Document - pdflatex; prepared on IBM PC ; to print on HP; pages: 19 ; figures: none. none
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Web page: http://128.118.178.162

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Keywords: terrorism; rent-seeking; resource allocation;

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References

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  1. Jack Hirshleifer, 1991. "The Paradox Of Power," Economics and Politics, Wiley Blackwell, vol. 3(3), pages 177-200, November.
  2. Skaperdas, S., 1991. "Cooperation, Conflict And Power In The Absence Of Property Rights," Papers 90-91-06a, California Irvine - School of Social Sciences.
  3. Grossman, Herschel I., 2002. ""Make us a king": anarchy, predation, and the state," European Journal of Political Economy, Elsevier, vol. 18(1), pages 31-46, March.
  4. Kai A. Konrad, 2002. "Investment in the Absence of Property Rights: The Role of Incumbency Advantages," CESifo Working Paper Series 698, CESifo Group Munich.
  5. Grossman, Herschel I & Kim, Minseong, 1995. "Swords or Plowshares? A Theory of the Security of Claims to Property," Journal of Political Economy, University of Chicago Press, vol. 103(6), pages 1275-88, December.
  6. Jack Hirshleifer, 1989. "Conflict and rent-seeking success functions: Ratio vs. difference models of relative success," Public Choice, Springer, vol. 63(2), pages 101-112, November.
  7. James A. Robinson, 2001. "Social identity, inequality and conflict," Economics of Governance, Springer, vol. 2(1), pages 85-99, 03.
  8. Hirshleifer, Jack, 1995. "Anarchy and Its Breakdown," Journal of Political Economy, University of Chicago Press, vol. 103(1), pages 26-52, February.
  9. Arye L. Hillman & John G. Riley, 1989. "Politically Contestable Rents And Transfers," Economics and Politics, Wiley Blackwell, vol. 1(1), pages 17-39, 03.
  10. Nitzan, Shmuel, 1994. "Modelling rent-seeking contests," European Journal of Political Economy, Elsevier, vol. 10(1), pages 41-60, May.
  11. Garfinkel, M.R., 1992. ""Domestic Politics and International Conflict"," Papers 90-92-30, California Irvine - School of Social Sciences.
  12. Sandler, Todd & Enders, Walter, 2004. "An economic perspective on transnational terrorism," European Journal of Political Economy, Elsevier, vol. 20(2), pages 301-316, June.
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Citations

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Cited by:
  1. Nuno Garoupa & Jonathan Klick & Francesco Parisi, 2006. "A law and economics perspective on terrorism," Public Choice, Springer, vol. 128(1), pages 147-168, July.
  2. Libman Alexander, 2010. "A Small Victorious War: Domestic Revolution and International Conflict," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 16(1), pages 1-25, December.
  3. Tilman Brück & Bengt-Arne Wickström, 2004. "The Economic Consequences of Terror: A Brief Survey," HiCN Working Papers 03, Households in Conflict Network.
  4. Enrico Spolaore, 2012. "The Economics of Political Borders," CESifo Working Paper Series 3854, CESifo Group Munich.
  5. Zaman, Nadeem Uz & Ghutai, Gul & Khan, Kaneez Raza, 2012. "The nature, sources and the socio-economic effects of terrorism in Balochistan," MPRA Paper 37075, University Library of Munich, Germany.
  6. Enrico Spolaore, 2009. "National Borders, Conflict and Peace," Discussion Papers Series, Department of Economics, Tufts University 0744, Department of Economics, Tufts University.
  7. Libman, Alexander, 2009. "A small victorious war: political institutions and international conflict," MPRA Paper 17041, University Library of Munich, Germany.
  8. Johannes Münster & Klaas Staal, 2012. "How organizational structure can reduce rent-seeking," Public Choice, Springer, vol. 150(3), pages 579-594, March.
  9. Libman, Alexander Mikhailovich, 2009. "Эндогенные Границы И Распределение Власти В Федерациях И Международных Сообществах
    [ENDOGENOUS BOUNDARIES AND DISTRIBUTION O
    ," MPRA Paper 16473, University Library of Munich, Germany.
  10. Blomberg, S. Brock & Hess, Gregory D. & Orphanides, Athanasios, 2004. "The macroeconomic consequences of terrorism," Journal of Monetary Economics, Elsevier, vol. 51(5), pages 1007-1032, July.
  11. Münster, Johannes & Staal, Klaas, 2005. "War with Outsiders Makes Peace Inside," Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 75, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.

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