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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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  1. Gary S. Becker, 1974. "Crime and Punishment: An Economic Approach," NBER Chapters, in: Essays in the Economics of Crime and Punishment, pages 1-54 National Bureau of Economic Research, Inc.
  2. Enders, Walter & Sandler, Todd, 1999. "Transnational Terrorism in the Post-Cold War Era," Staff General Research Papers 1532, Iowa State University, Department of Economics.
  3. Gassebner, Martin & Jong-A-Pin, Richard & Mierau, Jochen O., 2008. "Terrorism and electoral accountability: One strike, you're out!," Economics Letters, Elsevier, vol. 100(1), pages 126-129, July.
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    • Martin Gassebner & Richard Jong‐A‐Pin & Jochen O. Mierau, 2011. "Terrorism And Cabinet Duration," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 52(4), pages 1253-1270, November.
  7. 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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  9. Alberto Abadie, 2006. "Poverty, Political Freedom, and the Roots of Terrorism," American Economic Review, American Economic Association, vol. 96(2), pages 50-56, May.
  10. Bjørnskov, Christian & Drehe, Axel & Fischer, Justina A.V., 2008. "On decentralization and life satisfaction," Economics Letters, Elsevier, vol. 99(1), pages 147-151, April.
  11. Kotsogiannis, Christos & Schwager, Robert, 2006. "On the incentives to experiment in federations," Journal of Urban Economics, Elsevier, vol. 60(3), pages 484-497, November.
  12. Bruno S. Frey & Dominik Rohner, 2006. "Blood and Ink! The Common-Interest-GameBetween Terrorists and the Media," IEW - Working Papers 285, Institute for Empirical Research in Economics - University of Zurich.
  13. Bruno S. Frey & Simon Luechinger & Alois Stutzer, 2004. "Calculating Tragedy: Assessing the Costs of Terrorism," CREMA Working Paper Series 2004-23, Center for Research in Economics, Management and the Arts (CREMA).
  14. Gallup, J.L. & Sachs, J.D. & Mullinger, A., 1999. "Geography and Economic Development," Papers 1, Chicago - Graduate School of Business.
  15. Bruno S. Frey & Simon Luechinger, 2005. "Measuring terrorism," Chapters, in: Law and the State, chapter 6 Edward Elgar.
  16. Justina A.V. Fischer, 2005. "Do Institutions of Direct Democracy Tame the Leviathan? Swiss Evidence on the Structure of Expenditure for Public Education," University of St. Gallen Department of Economics working paper series 2005 2005-22, Department of Economics, University of St. Gallen.
  17. Bruno S. Frey & Simon Luechinger, . "How to Fight Terrorism: Alternatives to Deterrence," IEW - Working Papers 137, Institute for Empirical Research in Economics - University of Zurich.
  18. Frey, Bruno S. & Luechinger, Simon, 2004. "Decentralization as a disincentive for terror," European Journal of Political Economy, Elsevier, vol. 20(2), pages 509-515, June.
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  21. Ebel, Robert D. & Yilmaz, Serdar, 2002. "On the measurement and impact of fiscal decentralization," Policy Research Working Paper Series 2809, The World Bank.
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  27. repec:cup:cbooks:9780521029018 is not listed on IDEAS
  28. Alan B. Krueger & Jitka Maleckova, 2003. "Education, Poverty and Terrorism: Is There a Causal Connection?," Journal of Economic Perspectives, American Economic Association, vol. 17(4), pages 119-144, Fall.
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