The Bologna Institute for Policy Research | Seminar Series Event | Nicola-Limodio-Terrorism-Financing-Recruitment-and-Attacks-Evidence-from-a-Natural-Experiment-in-Pakistan
February 7, 2019 - 18:30 Penthouse - International Economics Series

Terrorism Financing, Recruitment and Attacks: Evidence from a Natural Experiment in Pakistan
Nicola Limodio, Bocconi University, Italy


hosted by Professor Filippo Taddei

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Limodio investigates the relation between terrorism financing and attacks through a panel of 1,545 Pakistani cities and exogenous variation in a Sharia-compliant funding source. Cities exposed to higher financing experience more attacks, with terrorist organizations reacting to temporary funding flows. Two methods lead to identifying an organization-financing channel. First, a city-organization variation allows: a) dissecting the demand and supply of terrorist attacks, with supply exclusively explaining these results; b) estimating the elasticity of attacks to financing (0.08). Second, a measure of terrorist recruitment, calculated using dark web data and machine-learning, exhibits complementarities with financing in increasing attacks.

Nicola Limodio is Assistant Professor of Finance at Bocconi University.




 





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