AbstractThe following sections are included:IntroductionThe Economics 101 ModelThe Credit Rationing ModelSocial PlannerDecentralized EquilibriumConclusionsReferencesAppendix A

For Afghanistan, the dual prospect of declining donor support and high ongoing security spending over the medium term keeps its government budget tight. This paper uses a general equilibrium model to capture the security–development trade-off facing the government in its effort to...