IDEAS home Printed from https://ideas.repec.org/a/vep/journl/y2015v128i1p57-74.html
   My bibliography  Save this article

Beyond deterrence and decline. Towards a general understanding of peace economics

Author

Listed:
  • Raul Caruso

    () (Institute of Economic Policy, Center for Applied Economics (CSEA), Universita` Cattolica del Sacro Cuore, Milano)

Abstract

The aim of this short article is to provide elements for a general discussion on peace economics and its potential contribution to economics and economic policy. I first present a discussion on deterrence equilibria and consequent allocation of resources. Eventually I expound five economic channels through which military expenditures turn to be detrimental for economic development. Finally some elements to build a framework for a peaceful economic policy are presented.

Suggested Citation

  • Raul Caruso, 2015. "Beyond deterrence and decline. Towards a general understanding of peace economics," Rivista Internazionale di Scienze Sociali, Vita e Pensiero, Pubblicazioni dell'Universita' Cattolica del Sacro Cuore, vol. 128(1), pages 57-74.
  • Handle: RePEc:vep:journl:y:2015:v:128:i:1:p:57-74
    as

    Download full text from publisher

    File URL: http://riss.vitaepensiero.it/scheda-articolo_digital/raul-caruso/beyond-deterrence-and-decline-towards-a-general-understandingof-peace-economics-000518_2015_0001_0057-307074.html
    Download Restriction: Yes

    Other versions of this item:

    References listed on IDEAS

    as
    1. Arrow Kenneth J., 2000. "The Basic Economics of Arms Reduction," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 6(3), pages 1-17, July.
    2. Keynes, John Maynard, 1919. "The Economic Consequences of the Peace," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, number keynes1919.
    3. John Strauss & Duncan Thomas, 1998. "Health, Nutrition, and Economic Development," Journal of Economic Literature, American Economic Association, vol. 36(2), pages 766-817, June.
    4. Raul Caruso, 2012. "Differentials in property Rights in a two-sector economy," Revue d'économie politique, Dalloz, vol. 122(2), pages 257-278.
    5. Caruso Raul & Di Domizio Marco, 2015. "The Impact of US Military Spending on Public Debt in Europe (1992–2013): A Note," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 21(4), pages 459-466, December.
    6. Williamson, Jeffrey G., 1984. "Why Was British Growth So Slow During the Industrial Revolution?," The Journal of Economic History, Cambridge University Press, vol. 44(03), pages 687-712, September.
    7. Charles H. Anderton, 1989. "Arms Race Modeling," Journal of Conflict Resolution, Peace Science Society (International), vol. 33(2), pages 346-367, June.
    8. Bhagwati, Jagdish N, 1982. "Directly Unproductive, Profit-seeking (DUP) Activities," Journal of Political Economy, University of Chicago Press, vol. 90(5), pages 988-1002, October.
    9. Katarina Keller & Panu Poutvaara & Andreas Wagener, 2009. "Military Draft And Economic Growth In Oecd Countries," Defence and Peace Economics, Taylor & Francis Journals, vol. 20(5), pages 373-393, October.
    10. Piero Cipollone & Alfonso Rosolia, 2007. "Social Interactions in High School: Lessons from an Earthquake," American Economic Review, American Economic Association, vol. 97(3), pages 948-965, June.
    11. Skaperdas, Stergios, 1992. "Cooperation, Conflict, and Power in the Absence of Property Rights," American Economic Review, American Economic Association, vol. 82(4), pages 720-739, September.
    12. Hirshleifer, Jack, 1991. "The Technology of Conflict as an Economic Activity," American Economic Review, American Economic Association, vol. 81(2), pages 130-134, May.
    13. repec:mes:challe:v:34:y:1991:i:3:p:54-58 is not listed on IDEAS
    14. Caruso Raul, 2003. "The Impact of International Economic Sanctions on Trade: An Empirical Analysis," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 9(2), pages 1-36, April.
    15. Joachim Wagner, 2007. "Exports and Productivity: A Survey of the Evidence from Firm-level Data," The World Economy, Wiley Blackwell, vol. 30(1), pages 60-82, January.
    16. Fanny Coulomb & Keith Hartley & Michael Intriligator, 2008. "Pacifism In Economic Analysis: A Historical Perspective," Defence and Peace Economics, Taylor & Francis Journals, vol. 19(5), pages 373-386.
    17. Carmen M. Reinhart & Vincent R. Reinhart & Kenneth S. Rogoff, 2012. "Public Debt Overhangs: Advanced-Economy Episodes since 1800," Journal of Economic Perspectives, American Economic Association, vol. 26(3), pages 69-86, Summer.
    18. Mansfield, Edward D. & Pevehouse, Jon C., 2000. "Trade Blocs, Trade Flows, and International Conflict," International Organization, Cambridge University Press, vol. 54(04), pages 775-808, September.
    19. 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.
    20. Gupta, Sanjeev & de Mello, Luiz & Sharan, Raju, 2001. "Corruption and military spending," European Journal of Political Economy, Elsevier, vol. 17(4), pages 749-777, November.
    21. Matthew J. Baker, 2003. "An Equilibrium Conflict Model of Land Tenure in Hunter-Gatherer Societies," Journal of Political Economy, University of Chicago Press, vol. 111(1), pages 124-173, February.
    22. Hiau Looi Kee & Cristina Neagu & Alessandro Nicita, 2013. "Is Protectionism on the Rise? Assessing National Trade Policies during the Crisis of 2008," The Review of Economics and Statistics, MIT Press, vol. 95(1), pages 342-346, March.
    23. Marwah Kanta & Klein Lawrence R., 2005. "Lost Productivity and Defense Burden of the Southern Cone of Latin America: A Page from History," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 11(1), pages 1-30, May.
    24. Grossman, Herschel I & Kim, Minseong, 1995. "Swords or Plowshares? A Theory of the Security of Claims to Property," Journal of Political Economy, University of Chicago Press, vol. 103(6), pages 1275-1288, December.
    25. Suzanna-Maria Paleologou, 2013. "A Dynamic Panel Data Model For Analyzing The Relationship Between Military Expenditure And Government Debt In The Eu," Defence and Peace Economics, Taylor & Francis Journals, vol. 24(5), pages 419-428, October.
    26. Casey B. Mulligan & Ricard Gil & Xavier Sala-i-Martin, 2004. "Do Democracies Have Different Public Policies than Nondemocracies?," Journal of Economic Perspectives, American Economic Association, vol. 18(1), pages 51-74, Winter.
    27. Intriligator, Michael D, 1975. "Strategic Considerations in the Richardson Model of Arms Races," Journal of Political Economy, University of Chicago Press, vol. 83(2), pages 339-353, April.
    28. Bove, Vincenzo & Nisticò, Roberto, 2014. "Military in politics and budgetary allocations," Journal of Comparative Economics, Elsevier, vol. 42(4), pages 1065-1078.
    29. Intriligator Michael D, 2011. "Peace Science and Peace Economics Can Help Win the Fight against Nuclear Proliferation," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 16(2), pages 1-10, January.
    30. Matthieu Bussière & Emilia Pérez‐Barreiro & Roland Straub & Daria Taglioni, 2011. "Protectionist Responses to the Crisis: Global Trends and Implications," The World Economy, Wiley Blackwell, vol. 34, pages 826-852, May.
    31. Caruso Raul, 2011. "On the Nature of Peace Economics," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 16(2), pages 1-13, January.
    32. Raul Caruso, 2006. "A Trade Institution as a Peaceful Institution? A Contribution to Integrative Theory," Conflict Management and Peace Science, Peace Science Society (International), vol. 23(1), pages 53-72, February.
    33. Kanta Marwah & Lawrence R. Klein, 2004. "Lost Productivity and Defense Burden of the Southern Cone of Latin America," Carleton Economic Papers 04-01, Carleton University, Department of Economics, revised May 2005.
    34. Reuveny Rafael, 2000. "The Trade and Conflict Debate: A Survey of Theory, Evidence and Future Research," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 6(1), pages 1-29, January.
    35. J. Paul Dunne & Nan Tian, 2015. "Military Expenditure, Economic Growth and Heterogeneity," Defence and Peace Economics, Taylor & Francis Journals, vol. 26(1), pages 15-31, February.
    36. Grossman, Herschel I, 1991. "A General Equilibrium Model of Insurrections," American Economic Review, American Economic Association, vol. 81(4), pages 912-921, September.
    37. J. Paul Dunne & Nan Tian, 2013. "Military expenditure and economic growth: A survey," Economics of Peace and Security Journal, EPS Publishing, vol. 8(1), pages 5-11, April.
    38. Collier, Paul & Hoeffler, Anke, 1998. "On Economic Causes of Civil War," Oxford Economic Papers, Oxford University Press, vol. 50(4), pages 563-573, October.
    39. Andrew B. Bernard & J. Bradford Jensen, 2004. "Why Some Firms Export," The Review of Economics and Statistics, MIT Press, vol. 86(2), pages 561-569, May.
    40. Baumol, William J., 1996. "Entrepreneurship: Productive, unproductive, and destructive," Journal of Business Venturing, Elsevier, vol. 11(1), pages 3-22, January.
    41. d'Agostino, Giorgio & Dunne, John Paul & Pieroni, Luca, 2013. "Military Expenditure, Endogeneity and Economic Growth," MPRA Paper 45640, University Library of Munich, Germany.
    42. Russell Smyth & Paresh Kumar Narayan, 2009. "A Panel Data Analysis of the Military Expenditure-External Debt Nexus: Evidence from Six Middle Eastern Countries," Journal of Peace Research, Peace Research Institute Oslo, vol. 46(2), pages 235-250, March.
    43. Neary, Hugh M, 1997. "Equilibrium Structure in an Economic Model of Conflict," Economic Inquiry, Western Economic Association International, vol. 35(3), pages 480-494, July.
    44. Philip R. Lane & Aaron Tornell, 1999. "The Voracity Effect," American Economic Review, American Economic Association, vol. 89(1), pages 22-46, March.
    45. Baumol, William J, 1986. "Productivity Growth, Convergence, and Welfare: What the Long-run Data Show," American Economic Review, American Economic Association, vol. 76(5), pages 1072-1085, December.
    46. Raul Caruso & Addesa Francesco, 2012. "Country Survey: Military Expenditure And Its Impact On Productivity In Italy, 1988--2008," Defence and Peace Economics, Taylor & Francis Journals, vol. 23(5), pages 471-484, October.
    47. Johannes Münster, 2007. "Simultaneous inter- and intra-group conflicts," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 32(2), pages 333-352, August.
    48. HÃ¥vard Hegre & John R Oneal & Bruce Russett, 2010. "Trade does promote peace: New simultaneous estimates of the reciprocal effects of trade and conflict," Journal of Peace Research, Peace Research Institute Oslo, vol. 47(6), pages 763-774, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. repec:epc:journl:v:12:y:2017:i:2:p:32-36 is not listed on IDEAS
    2. Sironi Emiliano & Bonazzi Leda Maria, 2016. "Direct Victimization Experiences and Fear of Crime: A Gender Perspective," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 22(2), pages 159-172, April.

    More about this item

    Keywords

    Peace; War; Development; Military expenditures; Butter; Guns and Ice-cream;

    JEL classification:

    • H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • F51 - International Economics - - International Relations, National Security, and International Political Economy - - - International Conflicts; Negotiations; Sanctions
    • F53 - International Economics - - International Relations, National Security, and International Political Economy - - - International Agreements and Observance; International Organizations

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:vep:journl:y:2015:v:128:i:1:p:57-74. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Vep - Vita e Pensiero). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.