Foreign Aid Designed to Diminish Terrorist Atrocities can Increase Them

Michael Mandler and Michael Spagat ()
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Michael Mandler and Michael Spagat: Department of Economics, Royal Holloway, University of London
Authors registered in the RePEc Author Service: Michael Mandler and Michael Spagat

No 03/10, Royal Holloway, University of London: Discussion Papers in Economics from Department of Economics, Royal Holloway University of London

Abstract: A domestic power faces an enemy and commits terrorist atrocities to increase the likelihood of victory. A foreign patron can grant aid to the power but prefers fewer or no atrocities. The domestic power responds by acquiescing in the creation of uncontrollable paramilitaries that commit even more atrocities. Once the paramilitaries are set up, aid flows and the atrocity level is high. Now suppose the foreign patron is uncertain whether the domestic power can control the paramilitaries. At a pooling equilibrium the domestic power will commit more atrocities than it would commit in isolation to demonstrate to the foreign patron that the paramilitaries are beyond the domestic power’s control. Case studies of Colombia, Northern Ireland, and Middle East illustrate the models.

JEL-codes: D74 D82 N4 (search for similar items in EconPapers)
Pages: 47 pages
Date: 2003-12, Revised 2003-12
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Working Paper: Foreign Aid Designed to Diminish Terrorist Atrocities can Increase Them (2003)
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