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Does income inequality lead to terrorism? Evidence from the post-9/11 era

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  • Krieger, Tim
  • Meierreiks, Daniel

Abstract

We study the influence of income inequality on terrorism. Using cross-national data for 79 countries for the 2002-2012 period, we show that endogeneity matters to the inequalityterrorism relationship, e.g., because of the distributional effects of terrorism. Once endogeneity is properly accounted for by means of an instrumental-variable approach, higher levels of income inequality result in more terrorist activity. This finding is robust to different definitions of the dependent variable, different estimation techniques and different instruments for income inequality. Our finding that inequality fuels terrorism is consistent with relative deprivation theory which argues that conflict results from frustration over the actual distribution of economic resources within a society.

Suggested Citation

  • Krieger, Tim & Meierreiks, Daniel, 2015. "Does income inequality lead to terrorism? Evidence from the post-9/11 era," Discussion Paper Series 2015-04, University of Freiburg, Wilfried Guth Endowed Chair for Constitutional Political Economy and Competition Policy.
  • Handle: RePEc:zbw:wgspdp:201504
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    References listed on IDEAS

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    Cited by:

    1. Simplice Asongu & Nicholas Biekpe, 2017. "Globalization and Terror in Africa," Working Papers 17/053, African Governance and Development Institute..
    2. Simplice Asongu & Vanessa Tchamyou & Ndemaze Asongu & Nina Tchamyou, 2017. "Fighting terrorism in Africa: evidence from bundling and unbundling institutions," Working Papers 17/047, African Governance and Development Institute..
    3. repec:afe:journl:v:19:y:2017:i:2:p:77-91 is not listed on IDEAS
    4. Simplice Asongu & Vanessa Tchamyou & Ndemaze Asongu & Nina Tchamyou, 2017. "The Comparative African Economics of Inclusive Development and Military Expenditure in Fighting Terrorism," Journal of African Development, African Finance and Economic Association, vol. 19(2), pages 77-91.

    More about this item

    Keywords

    income inequality; terrorism; Gini coefficient; instrumental-variable approach;

    JEL classification:

    • C36 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Instrumental Variables (IV) Estimation
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions

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