TY  - JOUR
PY  - 2005//
TI  - Terrorist threats and transitional dynamics in an overlapping generations model
JO  - Defence and peace economics
A1  - Shieh, JY
A1  - Chen, Joyce H.
A1  - Chang, Jen Jen
A1  - Lai, CC
SP  - 415
EP  - 425
VL  - 16
IS  - 6
N2  - 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 /> 
LA  - 
SN  - 1024-2694
UR  - http://dx.doi.org/10.1080/10242690500115956
ID  - ref1
ER  -