This paper presents an extension of the two-period Samaritan's Dilemma in order to analyze the potential for foreign aid to promote freedom. An example is the United States' recent opening towards Cuba. It is shown that a donor nation's dual concern for economic reforms and greater freedoms can...

Fiscal pacts have recently played important roles in stabilization policies, particularly in Latin America. The ability of pacts to achieve austerity is examined in a game of competition among pressure groups for fiscal influence. Coalitions can freely communicate about what strategies to play...

We analyse a dynamic model linking terrorist activities to popular support through a recruitment mechanism. It is shown that anti-terrorism policies focusing on liberal ideals (reducing repression, increasing economic opportunity) are effective at abating recruitment, thereby affecting the...

A dynamic model of a terrorist organization is presented with the defining feature being that a succession of operatives is recruited at different points in time. Consequently, a government’s counterterror policy must be tailored according to the vintage structure of the terrorist group...

This article presents a dynamic model in which counterterrorism policies have the potential to generate positive public support for terrorism via a backlash that may fuel terror recruitment. For an optimizing government aiming at maximizing security, this phenomenon produces a natural bound on...