We use the Hsiao--Granger method to test for terrorism--growth causality for seven Western European countries. In bivariate settings, the impact of economic performance on domestic terrorism is very strong. In trivariate settings, the impact of performance on terrorism diminishes. In general, we...

An economic theory of genocide is presented with application to Rwanda-1994. The theory considers 'macro' conditions under which an authority group chooses genocide and 'micro' conditions that facilitate the spread of genocide. From the macro perspective, a bargaining model highlights four...

The purpose of our study was to examine the effect of military training on the earnings of young men in Sweden. The analysis is based on the cohort of males born in 1973. This cohort was conscripted during a time of rapid change in Swedish security policy and substantial cutbacks in the armed...

We identify the causal effect of a reduction in military personnel on a number of socioeconomic indicators within the peripheries of military bases. The base realignments and closures in Germany are used as an exogenous source of variation that allows us to identify the effect of a demand shock...

This paper presents a game-theoretic model of suicide terrorism containing three agents: the terrorist leader; a targeted government; and potential terrorist supporters. Supporters join the terrorist group if they gain more from their participation than from their economic opportunities....

What is the case for defence and is it a worthwhile investment? This question is addressed for two contrasting nations, namely, the UK and New Zealand. Economists have a set of standard analytical tools for addressing the question but they are difficult to operationalise. This paper provides...

In 2004, stretched by wartime deployments, the US Army countered declining retention by increasing re-enlistment bonuses and implementing stop-loss to prevent soldiers from separating at the end of their enlistment. We estimate the effects of bonuses, deployment, and stop-loss on re-enlistment...

A large literature has used tests for Granger (1969) non-causality, GNC, to examine the interaction of military spending with the economy. Such tests answer a specific although quite limited question: can one reject the null hypothesis that one variable does not help predict another? If one can...