Global Threats and the Domestic Struggle for Power
AbstractThis 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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Bibliographic InfoPaper provided by EconWPA in its series Public Economics with number 0306001.
Length: 19 pages
Date of creation: 05 Jun 2003
Date of revision:
Note: Type of Document - pdflatex; prepared on IBM PC ; to print on HP; pages: 19 ; figures: none. none
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terrorism; rent-seeking; resource allocation;
Other versions of this item:
- Garfinkel, Michelle R., 2004. "Global threats and the domestic struggle for power," European Journal of Political Economy, Elsevier, vol. 20(2), pages 495-508, June.
- D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
- D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances
- H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War
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