Conflict, defense spending, and the number of nations
AbstractThis paper provides a formal model of endogenous border formation and choice of defense spending in a world with international conflict. We examine both the case of democratic governments and of dictatorships. The model is consistent with three observations. First, breakup of countries should follow a reduction in the likelihood of international conflicts. Second, the number of regional conflicts between smaller countries may increase as a result of the breakup of larger countries. Third, the size of the peace dividend (the reduction in defense spending in a more peaceful world) is limited by the process of country breakup.
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Bibliographic InfoArticle provided by Elsevier in its journal European Economic Review.
Volume (Year): 50 (2006)
Issue (Month): 1 (January)
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Web page: http://www.elsevier.com/locate/eer
Other versions of this item:
- Spolaore, Enrico & Alesina, Alberto, 2006. "Conflict, Defense Spending, and the Number of Nations," Scholarly Articles 4553016, Harvard University Department of Economics.
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- repec:hrv:faseco:4553034 is not listed on IDEAS
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