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From Malthusian War to Solowian Peace

  • Nils-Petter Lagerlof

    (York University)

We present a two-country version of Hansen and Prescott's two-sector long-run growth model, introducing war by letting the countries take land from each other, at the cost of destroying capital and killing people. Because land is an input only in the Malthus sector the transition to a Solow economy brings a decline in warfare, broadly consistent with an observed 19th-century decrease in Great Power wars. We also find, inter alia, that if governments are Malthus-biased (care less about Solow output), the transition can lead temporarily to more war. (Copyright: Elsevier)

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File URL: http://dx.doi.org/10.1016/j.red.2009.10.008
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Article provided by Elsevier for the Society for Economic Dynamics in its journal Review of Economic Dynamics.

Volume (Year): 13 (2010)
Issue (Month): 3 (July)
Pages: 616-636

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Handle: RePEc:red:issued:07-87
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  1. Robert J. Gordon, 2008. "Did Economics Cause World War II?," NBER Working Papers 14560, National Bureau of Economic Research, Inc.
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