@article{ref1,
title="Terrorist threats and transitional dynamics in an overlapping generations model",
journal="Defence and peace economics",
year="2005",
author="Shieh, JY and Chen, Joyce H. and Chang, Jen Jen and Lai, CC",
volume="16",
number="6",
pages="415-425",
abstract="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) and the public is fully informed, short-term consumption may misadjust from its long-term level. Before the terrorist attacks actually take place, households may be motivated to increase (rather than decrease) their consumption as a temporary response. This result may explain the temporary phenomenon of the increased consumption of certain types of goods in the period following September 11.<p />",
language="",
issn="1024-2694",
doi="10.1080/10242690500115956",
url="http://dx.doi.org/10.1080/10242690500115956"
}