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Decentralization as a Disincentive for Transnational Terror?

Listed author(s):
  • Axel Dreher
  • Justina A.V. Fischer

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. Taking account of the potential simultaneity between terror and decentralization, our results show that expenditure decentralization robustly reduces the number of terror events in a country, while political decentralization has no impact.

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File URL: http://dx.doi.org/10.3929/ethz-a-005510833
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Paper provided by KOF Swiss Economic Institute, ETH Zurich in its series KOF Working papers with number 08-185.

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Length: 28 pages
Date of creation: Jan 2008
Handle: RePEc:kof:wpskof:08-185
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  1. Alberto Abadie, 2006. "Poverty, Political Freedom, and the Roots of Terrorism," American Economic Review, American Economic Association, vol. 96(2), pages 50-56, May.
  2. Enders, Walter & Sandler, Todd, 1998. "Transnational Terrorism in the Post-Cold War Era," ISU General Staff Papers 199804010800001308, Iowa State University, Department of Economics.
  3. Jan Schnellenbach, 2006. "Appeasing nihilists? Some economic thoughts on reducing terrorist activity," Public Choice, Springer, vol. 129(3), pages 301-313, December.
  4. Bruno S. Frey & Simon Luechinger, "undated". "How to Fight Terrorism: Alternatives to Deterrence," IEW - Working Papers 137, Institute for Empirical Research in Economics - University of Zurich.
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