The Political Economy of Warfare
Warfare is enormously destructive, and yet countries regularly initiate armed conflict against one another. Even more surprisingly, wars are often quite popular with citizens who stand to gain little materially and may lose much more. This paper presents a model of warfare as the result of domestic political calculations. When incumbents have an edge in fighting wars, they may start wars even if those wars run counter to their country's interests. Challengers are particularly likely to urge aggression when they are unlikely to come into power and when the gains from coming to power are large. Leaders who start wars will naturally try to create hatred by emphasizing the threat and despicable character of the rival country. Wars will be more common in dictatorships than in democracies both because dictators have stronger incentives to stay in power and because they have greater control over the media.
|Date of creation:||Dec 2006|
|Date of revision:|
|Publication status:||published as Hess, Gregory D. (ed.) Guns and Butter: The Economic Causes and Consequences of Conflict. Cambridge: MIT Press, 2009.|
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- Gilat Levy & Ronny Razin, 2004.
"It Takes Two: An Explanation for the Democratic Peace,"
Journal of the European Economic Association,
MIT Press, vol. 2(1), pages 1-29, 03.
- Levy, Gilat & Razin, Ronny, 2003. "It Takes Two: An Explanation of the Democratic Peace," CEPR Discussion Papers 3947, C.E.P.R. Discussion Papers.
- Gilat Levy & Ronny Razin, 2004. "It takes two : an explanation of the democratic peace," LSE Research Online Documents on Economics 539, London School of Economics and Political Science, LSE Library.
- Matthew Gentzkow & Jesse Shapiro, 2005.
"Media Bias and Reputation,"
NBER Working Papers
11664, National Bureau of Economic Research, Inc.
- Hess, Gregory D & Orphanides, Athanasios, 1995. "War Politics: An Economic, Rational-Voter Framework," American Economic Review, American Economic Association, vol. 85(4), pages 828-46, September.
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