Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/218836 
Year of Publication: 
2019
Citation: 
[Journal:] World Development [ISSN:] 1873-5991 [Volume:] 116 [Publisher:] Elsevier [Place:] Amsterdam [Year:] 2019 [Pages:] 125-136
Publisher: 
Elsevier, Amsterdam
Abstract: 
We analyze the effect of income inequality on terrorism for a sample of 113 countries between 1984 and 2012. We provide evidence, robust to various methodological changes (e.g., the use of instrumental-variable approaches), that higher levels of income inequality are associated with more domestic terrorism. Analyzing the underlying transmission channels, we find that this effect is in parts due to the ill effects of income inequality on institutional outcomes (e.g., corruption) which in turn motivate domestic terrorism. We also investigate whether redistributional efforts can be effective in reducing terrorist activity. We find that countries that redistribute more see less domestic terrorism, in parts because redistribution improves institutional conditions. In light of this latter finding, we discuss the implications of our analysis for policymakers who want to counter domestic terrorism through redistributive policies.
Subjects: 
income inequality
terrorism
Gini coefficient
relative deprivation
redistribution
JEL: 
D74
I38
O15
C36
Published Version’s DOI: 
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Article
Document Version: 
Accepted Manuscript (Postprint)

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