Handbook on the Economics of Conflict
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Handbook on the Economics of Conflict

Edited by Derek L. Braddon and Keith Hartley

The Handbook on the Economics of Conflict conveys how economics can contribute to the understanding of conflict in its various dimensions embracing world wars, regional conflicts, terrorism and the role of peacekeeping in conflict prevention.
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Chapter 16: Terrorism: The Case of ETA

Carlos P. Barros and Luis A. Gil-Alana


Carlos P. Barros and Luis A. Gil-Alana 16.1 INTRODUCTION ETA – Euskadi Ta Askatasuna, or Basque Fatherland and Liberty – is the oldest and most persistent terrorist group at the European level. The aim of its terrorist activities is to establish an independent state for the Basque people in seven provinces in NorthEastern Spain and South-Western France where they have lived since ancient times. The group was created as an extreme, radical expression of the Basques’ profound pride in their own unique identity and culture and their determination to be recognized as a nation. The present chapter presents a survey of the literature on ETA terrorism and analyses peacetime duration between ETA terrorism attacks, by regressing the length of peacetime on deterrence variables and political variables. The timing of the terrorist attacks, which appear in the media as random events, has a specific non-random pattern, if we assume terrorists are rational actors (Enders and Sandler, 1993). Therefore, terrorist attacks are based on specific objective characteristics which, relative to their timing, can be analysed with duration models. This chapter contributes to the relevant literature, focusing again on ETA in peacetime between terrorist attacks, and bringing into the analysis shared and unshared heterogeneity in duration models. In fact, the aim of this chapter is to determine which factors may have had an influence in increasing the peacetime duration in ETA activity and, in a more ambitious way, to put an end to ETA atrocities in the future. The chapter is organized as follows. In...

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