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Global Threats and the Domestic Struggle for Power

  • Michelle R. Garfinkel

    (University of California-Irvine)

This 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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File URL: http://128.118.178.162/eps/pe/papers/0306/0306001.pdf
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Paper provided by EconWPA in its series Public Economics with number 0306001.

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Length: 19 pages
Date of creation: 05 Jun 2003
Date of revision:
Handle: RePEc:wpa:wuwppe:0306001
Note: Type of Document - pdflatex; prepared on IBM PC ; to print on HP; pages: 19 ; figures: none. none
Contact details of provider: Web page: http://128.118.178.162

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  1. Garfinkel, M.R., 1992. ""Domestic Politics and International Conflict"," Papers 90-92-30, California Irvine - School of Social Sciences.
  2. Konrad, Kai A., 2002. "Investment in the absence of property rights; the role of incumbency advantages," European Economic Review, Elsevier, vol. 46(8), pages 1521-1537, September.
  3. Grossman, Herschel I., 2002. ""Make us a king": anarchy, predation, and the state," European Journal of Political Economy, Elsevier, vol. 18(1), pages 31-46, March.
  4. Sandler, Todd & Enders, Walter, 2004. "An economic perspective on transnational terrorism," European Journal of Political Economy, Elsevier, vol. 20(2), pages 301-316, June.
  5. James A. Robinson, 2001. "Social identity, inequality and conflict," Economics of Governance, Springer, vol. 2(1), pages 85-99, 03.
  6. Skaperdas, Stergios, 1992. "Cooperation, Conflict, and Power in the Absence of Property Rights," American Economic Review, American Economic Association, vol. 82(4), pages 720-39, September.
  7. Jack Hirshleifer, 1991. "The Paradox Of Power," Economics and Politics, Wiley Blackwell, vol. 3(3), pages 177-200, November.
  8. Nitzan, Shmuel, 1994. "Modelling rent-seeking contests," European Journal of Political Economy, Elsevier, vol. 10(1), pages 41-60, May.
  9. Grossman, Herschel I & Kim, Minseong, 1995. "Swords or Plowshares? A Theory of the Security of Claims to Property," Journal of Political Economy, University of Chicago Press, vol. 103(6), pages 1275-88, December.
  10. Jack Hirshleifer, 1989. "Conflict and rent-seeking success functions: Ratio vs. difference models of relative success," Public Choice, Springer, vol. 63(2), pages 101-112, November.
  11. Arye L. Hillman & John G. Riley, 1987. "Politically Contestable Rents and Transfers," UCLA Economics Working Papers 452, UCLA Department of Economics.
  12. Hirshleifer, Jack, 1995. "Anarchy and Its Breakdown," Journal of Political Economy, University of Chicago Press, vol. 103(1), pages 26-52, February.
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