Article

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

Tilman Brück, Olaf J. De Groot and Carlos Bozzoli

in The Oxford Handbook of the Economics of Peace and Conflict

Published in print April 2012 | ISBN: 9780195392777
Published online November 2012 | | DOI: http://dx.doi.org/10.1093/oxfordhb/9780195392777.013.0012

Series: Oxford Handbooks

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

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While paying attention to counterfactual scenarios, this article explores “bottom-up” methods that attempt to add up identified components of costs, and gives an overview of the existing literature in conflict cost analysis. It discusses several case studies and studies that look at cost sources not included in those case studies. The article also discusses the missing links in the literature and suggests future research to overcome the shortcomings we identify. The discussion takes a specific look at Sri Lanka, comparing the methodologies and results regarding a specific conflict. It addresses the particular influence of military expenditures on economic growth, the international and intertemporal spillovers of conflict that affect economic growth, and the way human capital is affected by violent conflict.

Keywords: conflict costs; conflict cost analysis; military expenditures; Sri Lanka

Article.  10169 words. 

Subjects: Economics ; International Economics ; Econometric and Statistical Methods and Methodology: General

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