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Terrorism, crime and public spending: Panel VAR evidence from europe

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  • Konstantinos Drakos
  • Panagiotis Th. Konstantinou

Abstract

Within a panel VAR framework and utilizing generalized impulse response and forecast error variance decomposition analysis, we explore the dynamic effects of terrorism and crime on public order and safety spending across European countries during the period 1994-2006. Our findings show that a 'shock' in terrorism and/or in crime, significantly increases the subsequent trajectory of public order and safety spending. As a by-product, we find that public spending is ineffective in reducing observed crime or terrorism.

Suggested Citation

  • Konstantinos Drakos & Panagiotis Th. Konstantinou, 2014. "Terrorism, crime and public spending: Panel VAR evidence from europe," Defence and Peace Economics, Taylor & Francis Journals, vol. 25(4), pages 349-361, August.
    • Handle: RePEc:taf:defpea:v:25:y:2014:i:4:p:349-361
    DOI: 10.1080/10242694.2013.804668
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    Cited by:

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    3. Yen-Yao Wang & Chenhui Guo & Anjana Susarla & Vallabh Sambamurthy, 2021. "Online to Offline: The Impact of Social Media on Offline Sales in the Automobile Industry," Information Systems Research, INFORMS, vol. 32(2), pages 582-604, June.
    4. Zaira ADNAN & Mamta CHOWDHURY & Girijasankar MALLIK, 2019. "Foreign direct investment and total factor productivity in South Asia," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(2(619), S), pages 105-120, Summer.
    5. Essosinam Franck Karabou & Komlan Ametowoyo Adeve, 2024. "Empirical investigation of the relationship between terrorism, public debt and economically active women in the ECOWAS zone," Economics Bulletin, AccessEcon, vol. 44(2), pages 528-543.
    6. Ouédraogo, Rasmané & Sawadogo, Relwendé & Sawadogo, Hamidou, 2020. "Private and public investment in sub-Saharan Africa: The role of instability risks," Economic Systems, Elsevier, vol. 44(2).

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