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Mr. Serhan Cevik and John Ricco

-median number of terrorist incidents than those with below-median number of terrorist incidents. This finding, however, is not statistically significant. Second, with regards to the impact on military spending, the point coefficient estimates both for the number of attacks and fatalities are significantly larger in the high terrorism sample than those for the low terrorism sample. 9 Table 3. Heterogeneity in Terrorism Incidence Tax revenue Military spending Military spending Dependent variable: (percent of GDP) (percent of GDP