Seitz, Michael; Tarasov, Alexander; Zakharenko, Roman - Volkswirtschaftliche Fakultät, … - 2013
This paper develops a quantitative model of trade, military conflicts, and defense spending. Trade liberalization … are better off. We estimate the model using data on trade, conflicts, and military spending. We find that, after reduction … of costs of trade between a pair of hostile countries, the welfare effect of worldwide defense spending cuts is …