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How Many Bucks in a Bang: On the Estimation of the Economic Costs of Conflict

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Author Info

  • Olaf J. de Groot
  • Tilman Brück
  • Carlos Bozzoli

Abstract

The estimation of the costs of conflict is currently receiving a lot of attention in the literature. This paper aims to give a thorough overview of the existing literature, first by addressing the history of case studies that address conflict costs and second by looking at the existing body of cross-country analyses for conflict costs. In addition to the existing cross-country literature, a number of studies that only concern themselves with particular elements of conflict costs are included as well. In the end, this paper combines the insights from these previous analyses to explore how much room there is to further improve the existing studies. Specific recommendations are given how to proceed with the development of the field of conflict cost measurement.

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File URL: http://www.diw.de/documents/publikationen/73/diw_01.c.354156.de/diw_econsec0021.pdf
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Bibliographic Info

Paper provided by DIW Berlin, German Institute for Economic Research in its series Economics of Security Working Paper Series with number 21.

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Length: 35 p.
Date of creation: 2009
Date of revision:
Handle: RePEc:diw:diweos:diweos21

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Keywords: Conflict; costs of conflict; case studies;

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References

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  1. de la Grandville,Olivier, 2009. "Economic Growth," Cambridge Books, Cambridge University Press, number 9780521725200.
  2. Grobar, Lisa Morris & Gnanaselvam, Shiranthi, 1993. "The Economic Effects of the Sri Lankan Civil War," Economic Development and Cultural Change, University of Chicago Press, vol. 41(2), pages 395-405, January.
  3. Nisha Arunatilake & Sisira Kumara Jayasuriya & Saman Kelegama, 1999. "The Economic Cost of the War in Sri Lanka," Working Papers 1999.10, School of Economics, La Trobe University.
  4. de la Grandville,Olivier, 2009. "Economic Growth," Cambridge Books, Cambridge University Press, number 9780521898010.
  5. Olaf De Groot, 2010. "The Spillover Effects Of Conflict On Economic Growth In Neighbouring Countries In Africa," Defence and Peace Economics, Taylor and Francis Journals, vol. 21(2), pages 149-164.
  6. Reitschuler, Gerhard & Loening, Josef L., 2005. "Modeling the Defense-Growth Nexus in Guatemala," World Development, Elsevier, vol. 33(3), pages 513-526, March.
  7. David Roodman, 2009. "A Note on the Theme of Too Many Instruments," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 71(1), pages 135-158, 02.
  8. Christopher Blattman, 2006. "The Consequences of Child Soldiering," HiCN Working Papers 22, Households in Conflict Network.
  9. Sabrina DiAddario, 1997. "Estimating the economic costs of conflict: An examination of the two-gap estimation model for the case of Nicaragua," Oxford Development Studies, Taylor and Francis Journals, vol. 25(1), pages 123-141.
  10. William D. Nordhaus, 2002. "The Economic Consequences of a War with Iraq," Cowles Foundation Discussion Papers 1387, Cowles Foundation for Research in Economics, Yale University.
  11. Richard Blundell & Steve Bond & Frank Windmeijer, 2000. "Estimation in dynamic panel data models: improving on the performance of the standard GMM estimator," IFS Working Papers W00/12, Institute for Fiscal Studies.
  12. Mankiw, N Gregory & Romer, David & Weil, David N, 1992. "A Contribution to the Empirics of Economic Growth," The Quarterly Journal of Economics, MIT Press, vol. 107(2), pages 407-37, May.
  13. Alberto Abadie & Javier Gardeazabal, 2003. "The Economic Costs of Conflict: A Case Study of the Basque Country," American Economic Review, American Economic Association, vol. 93(1), pages 113-132, March.
  14. Paul Dunne & Sam Perlo-Freeman, 2003. "The Demand for Military Spending in Developing Countries," International Review of Applied Economics, Taylor and Francis Journals, vol. 17(1), pages 23-48.
  15. Maria Arrazola & Jose de Hevia, 2006. "Gender Differentials in Returns to Education in Spain," Education Economics, Taylor and Francis Journals, vol. 14(4), pages 469-486.
  16. Humberto Lopez & Quentin Wodon, 2005. "The Economic Impact of Armed Conflict in Rwanda," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 14(4), pages 586-602, December.
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Cited by:
  1. Jurgen Brauer & John P. Dunne, 2011. "On the Cost of Violence and the Benefit of Peace," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 16(2), pages 6.
  2. Michael Brzoska & Raphael Bossong & Eric van Um, 2011. "Security Economics in the European Context: Implications of the EUSECON Project," Economics of Security Working Paper Series 58, DIW Berlin, German Institute for Economic Research.

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