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Government Decentralization as a Disincentive for Transnational Terror? An Empirical Analysis

  • Dreher, Axel

    ()

    (Heidelberg University)

  • Fischer, Justina A.V.

    ()

    (University of Mannheim)

Using panel data for a maximum of 109 countries over the years 1976-2000, we empirically analyze the impact of decentralization on the occurrence of transnational terror. Our results show that expenditure decentralization reduces the number of transnational terror events in a country, while political decentralization has no impact. These results are robust to the choice of control variables and method of estimation.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 4259.

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Length: 42 pages
Date of creation: Jun 2009
Date of revision:
Publication status: published in: International Economic Review, 2010, 51 (4), 981 - 1002
Handle: RePEc:iza:izadps:dp4259
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  14. Axel Dreher & Jan-Egbert Sturm, 2006. "Do IMF and World Bank Influence Voting in the UN General Assembly?," CESifo Working Paper Series 1724, CESifo Group Munich.
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  23. Strumpf, Koleman S, 2002. " Does Government Decentralization Increase Policy Innovation?," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 4(2), pages 207-41.
  24. Ebel, Robert D. & Yilmaz, Serdar, 2002. "On the measurement and impact of fiscal decentralization," Policy Research Working Paper Series 2809, The World Bank.
  25. Bruno S. Frey & Simon Luechinger, . "Measuring Terrorism," IEW - Working Papers 171, Institute for Empirical Research in Economics - University of Zurich.
  26. Dreher, Axel & Gassebner, Martin, 2008. "Does political proximity to the U.S. cause terror?," Economics Letters, Elsevier, vol. 99(1), pages 27-29, April.
  27. Bjørnskov, Christian & Drehe, Axel & Fischer, Justina A.V., 2008. "On decentralization and life satisfaction," Economics Letters, Elsevier, vol. 99(1), pages 147-151, April.
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  29. Gallup, J.L. & Sachs, J.D. & Mullinger, A., 1999. "Geography and Economic Development," Papers 1, Chicago - Graduate School of Business.
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