01977cas a2200253 a 4500 AALejournalIMF015573 230101c9999 xx r poo 0 0eng d 5.00 USD 9781513510965 1018-5941 BD-DhAAL BD-DhAAL Cevik, Serhan. Fiscal Consequences of Terrorism / Serhan Cevik, John Ricco. Washington, D.C. : International Monetary Fund, 2015. 1 online resource (22 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper provides an empirical analysis of how the frequency and severity of terrorism affect government revenue and expenditure during the period 1970-2013 using a panel dataset on 153 countries. We find that terrorism has only a marginal negative effect on tax revenue performance, after controlling for economic and institutional factors. This effect is also not robust to alternative specifications and empirical strategies. On the other hand, we find strong evidence that terrorism is associated with an increase in military spending as a percent of GDP (and a share of total government expenditure). Our estimations reveal that this impact is greater when terrorist attacks are frequent and result in a large number of fatalities. Empirical findings also support the view that public finances in developing and low-income countries are more vulnerable to terrorism than those in countries that are richer and diversified. Mode of access: Internet Ricco, John. IMF Working Papers; Working Paper ; No. 2015/225 Full text available on IMF http://elibrary.imf.org/view/journals/001/2015/225/001.2015.issue-225-en.xml IMF e-Library