Aid and the Delegated Fight Against Terrorism
A positive empirical relationship is found between the level of foreign aid received by a country and the number of terrorist attacks originating from it. A simple model is used to explain it, where the donor delegates some actions against terrorism to the aid-recipient government. Aid is endogenous in an econometric equation explaining participation in terrorist events, as expected from the model, and an attacks-supply curve in which aid has a negative impact is presented at the end. Copyright © 2006 The Authors; Journal compilation © 2006 Blackwell Publishing Ltd.
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Volume (Year): 10 (2006)
Issue (Month): 2 (05)
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