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Essays on the Economics of Extremism in the United States

Abstract

This dissertation consists of two essays studying extremism in the United States using economic tools and theory and one essay extending a well-known econometric method.

In the first chapter, I study how domestic extremist organizations in the United States attract new members. Such organizations have become a significant threat to Western democracies, with some groups attracting tens of thousands of members. I study the impact of three tactics – membership discounts, armed events, and advertisements – on national recruitment by the Oath Keepers, America’s largest paramilitary organization. Using a synthetic control framework, I find that discounts cause new member signups to increase by 144\% and armed events by 170\%; however, advertisements decrease it. Finally, I fail to find strong evidence that economic inequality drives the inflow of new members during any tactic.

In Chapter 2, I study the efficacy of social media policy designed to curb extremist activity. While governments deliberate on how to regulate, some social media companies have removed creators of offensive content -- deplatforming. I estimate the effects of deplatforming on revenue and viewership, using variations in the timing of removals across two video-streaming companies — YouTube, and its far-right competitor, Bitchute. Being deplatformed on Youtube results in a 30\% \emph{increase} in weekly Bitcoin revenue and a 50\% increase in viewership on Bitchute. This increase in Bitchute activity is less than that on YouTube, meaning that deplatforming works in decreasing a content creator's overall views and revenue.

Finally, Chapter 3 extends the synthetic control methodology to account for more scenarios. Synthetic control methods are a popular tool for measuring the effects of policy interventions on a single treated unit. In practice, researchers create a counterfactual using a linear combination of untreated units that closely mimic the treated unit. Oftentimes, creating a synthetic control is not possible due to untreated units' dynamic characteristics such as integrated processes or a time varying relationship. These are cases in which viewing the counterfactual estimation problem as a cross-sectional one fails. In this paper, I investigate a new approach to estimate the synthetic control counterfactual incorporating time varying parameters to handle such situations. This is done using a state space framework and Bayesian shrinkage. The dynamics allow for a closer pre-treatment fit leading to a more accurate counterfactual estimate. Monte Carlo simulations are performed showcasing the usefulness of the proposed model in a synthetic control setting. I then compare the proposed model to existing approaches in a classic synthetic control case study.

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