Shieh, Jhy-Yuan; Chen, Jhy-Hwa; Chang, Juin-Jen; Lai, … - In: Defence and Peace Economics 16 (2005) 6, pp. 415-425
This paper incorporates the nature of terrorist threats into the Yarri (1965)-Blanchard (1985) model and uses it to discuss the transitional dynamics of consumption in response to an anticipated terrorist attack. It is shown that if the terrorist attack is pre-announced (and hence anticipated)...