Fall 2013 Volume VIII, Issue III
"The Terrorist Laffer Curve-Rationality and Insurgency in Iraq, 2004-2008"
While the original framework by Arthur Laffer focused on tax rates and the resulting revenue from such taxation, the Laffer curve has been applied to other studies in behavior as well. This paper details evidence of a Laffer curve in Iraq with respect to terrorist violence and Iraqi public support of that violence against the U.S.-led coalition forces. As insurgents began killing more Iraqi citizens in their attacks on U.S.-led forces, the increased lethality caused initial support of such violence to erode. As a result, the high-level terrorist hierarchy has suggested that its operatives reduce lethality and indiscriminate bombings.
Keywords: Laffer curve, insurgencies, sectarian violence, militias, rationality
JEL Classification Codes: A10, A14, D01
Dennis S. Edwards
Professor of Economics
Coastal Carolina University
E. Craig Wall, Sr. College of Business Administration
P. O. Box 261954
Conway, SC 29528-6054