Martin, Philippe; Mayer, Thierry; Thoenig, Mathias - C.E.P.R. Discussion Papers - 2005
This paper analyses theoretically and empirically the relationship between trade and war. We show that the intuition … that trade promotes peace is only partially true even in a model where trade is beneficial to all, war reduces trade and … leaders take into account the costs of war. When war can occur because of the presence of asymmetric information, the …