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Property Distribution And Configurations Of Sovereign States: A Rational Economic Model

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Author Info
MARTIN MCGUIRE
Abstract

A nation's wealth is both an object of conquest to covetous aggressors and a resource to its owners for self defense. To maintain autonomy every country must mount a defense which either makes its capture (1) more expensive than any aggressor can afford, or (2) more expensive than it is worth to aggressors. Whether this condition can be satisfied for all countries simultaneously depends as shown in this paper on relative efficacy of military offense versus defense, the aggregate of wealth among nations and its distribution, and the benefits a conqueror may obtain from conquest, including the duration of these benefits. The paper shows how these factors fit together to determine the sustainability and stability of the international distribution of property as embodied in the configuration of sovereign states.

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Publisher Info
Article provided by Taylor and Francis Journals in its journal Defence and Peace Economics.

Volume (Year): 13 (2002)
Issue (Month): 4 (January)
Pages: 251-270
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Handle: RePEc:taf:defpea:v:13:y:2002:i:4:p:251-270

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Related research
Keywords: Sovereignty; Property Rights; Economics Of War/peace; Foundations Of Conflict Analysis;

References listed on IDEAS
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  1. Bolton, Patrick & Roland, Gerard, 1997. "The Breakup of Nations: A Political Economy Analysis," The Quarterly Journal of Economics, MIT Press, vol. 112(4), pages 1057-90, November.
    Other versions:
  2. Sandler, Todd, 1977. "Impurity of Defense: An Application to the Economics of Alliances," Kyklos, Blackwell Publishing, vol. 30(3), pages 443-60.
  3. Wittman, Donald, 1991. "Nations and States: Mergers and Acquisitions; Dissolutions and Divorce," American Economic Review, American Economic Association, vol. 81(2), pages 126-29, May. [Downloadable!] (restricted)
  4. Herschel I. Grossman & Juan Mendoza, 2001. "Annexation or Conquest? The Economics of Empire Building," NBER Working Papers 8109, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  5. T. C. Schelling, 1967. "The Strategy of Inflicting Costs," NBER Chapters, in: Issues in Defense Economics, pages 105-128 National Bureau of Economic Research, Inc. [Downloadable!]
  6. Kai A. Konrad & Stergios Skaperdas, 2005. "The Market for Protection and the Origin of the State," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
    Other versions:
  7. Garfinkel, Michelle R, 1990. "Arming as a Strategic Investment in a Cooperative Equilibrium," American Economic Review, American Economic Association, vol. 80(1), pages 50-68, March. [Downloadable!] (restricted)
  8. Alberto Alesina & Enrico Spolaore & Romain Wacziarg, 2000. "Economic Integration and Political Disintegration," American Economic Review, American Economic Association, vol. 90(5), pages 1276-1296, December. [Downloadable!] (restricted)
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  9. Alesina, Alberto & Spolaore, Enrico, 2005. "War, peace, and the size of countries," Journal of Public Economics, Elsevier, vol. 89(7), pages 1333-1354, July. [Downloadable!] (restricted)
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  10. Stergios Skaperdas & Constantinos Syropoulos, 2002. "Insecure Property and the Efficiency of Exchange," Economic Journal, Royal Economic Society, vol. 112(476), pages 133-146, January. [Downloadable!] (restricted)
  11. Genicot, C. & Skaperdas, S., 2000. "Investing in Confict Management," Papers 00-01-17, California Irvine - School of Social Sciences.
  12. Thompson, Earl A, 1974. "Taxation and National Defense," Journal of Political Economy, University of Chicago Press, vol. 82(4), pages 755-82, July/Aug.. [Downloadable!] (restricted)
  13. Casella, Alessandra, 2001. "The Role of Market Size in the Formation of Jurisdictions," Review of Economic Studies, Blackwell Publishing, vol. 68(1), pages 83-108, January.
    Other versions:
  14. Martin C. McGuire, 1967. "The Structure of Choice Between Deterrence and Defense," NBER Chapters, in: Issues in Defense Economics, pages 129-170 National Bureau of Economic Research, Inc. [Downloadable!]
  15. Herschel I. Grossman, 1998. "Producers and Predators," Working Papers 98-6, Brown University, Department of Economics.
    Other versions:
  16. Anderton, Charles H., 1999. "Appropriation possibilities in a simple exchange economy," Economics Letters, Elsevier, vol. 63(1), pages 77-83, April. [Downloadable!] (restricted)
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