Bandyopadhyay, Subhayu; Sandler, Todd; Younas, Javed - 2017
This paper investigates the interplay of trade and terrorism externalities under free trade between a developed nation … some of its attacks abroad. Terms-of-trade considerations lead the developed nation to raise its counterterrorism level … countermeasures to weaken the terrorist group. Again, the developed country raises its efforts owing to the terms-of-trade externality …