Terrorism, Trade, and Welfare

By Subhayu Bandyopadhyay, Todd Sandler, Javed Younas in Review. For a standard competitive trade model, the authors show that the incidence of terrorism in different nations can affect the pattern of trade. Nations with a greater incidence of terrorism will export goods that are more immune to terrorism-related disruptions, while importing more terrorism-impacted goods. 

Continue reading at St. Louis Fed - Recent Research →