Aid and the Delegated Fight Against Terrorism |
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| Authors: | Jean-Paul Azam Alexandra Delacroix |
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| Institution: | ARQADE, University of Toulouse 1, 21, Allée de Brienne, 31000 Toulouse, France. E-mail: . and IDEI, Institut Universitaire de France.; SGAM, Paris. E-mail: Alexandra. . |
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| Abstract: | A positive empirical relationship is found between the level of foreign aid received by a country and the number of terrorist attacks originating from it. A simple model is used to explain it, where the donor delegates some actions against terrorism to the aid‐recipient government. Aid is endogenous in an econometric equation explaining participation in terrorist events, as expected from the model, and an attacks‐supply curve in which aid has a negative impact is presented at the end. |
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