Do agricultural producers forgo otherwise profitable investments due to civil conflict? Answering this question is crucial to our understanding of the costs of violence, but requires the ability to measure farmers’ willingness to invest and access to exogenous variation in conflict intensity....

Previous work has documented a negative correlation between internal conflict and state capacity. We attempt to shed light on mechanisms that underlie this relationship, using data for Colombian municipalities. We rely on identifying heterogeneous effects of different types of violent events on...