Does Terrorism Pay? An Empirical Analysis
Does terrorism help perpetrators to achieve their demands? Few research questions about terrorism generate as much controversy. This study contributes to the debate in two main ways. First, we identify major limitations within the burgeoning literature on the effectiveness of terrorism. Specifically, we highlight the main methodological problems vexing empirical assessments of whether terrorism promotes government concessions. Second, we present a research design that circumvents those recurrent methodological shortcomings. In short, we find no empirical evidence to suggest that terrorism pays. In fact, multiple variants of the tactic in hostage standoffs impede the perpetrators from coercing government compliance. The negative effect of terrorism on the odds of compliance is significant and substantial across logistic and multilevel logistic model specifications, particularly when civilians are killed or wounded in the coercive incident. These findings have important implications for both scholars and practitioners of counterterrorism.