BLOMBERG, S. BROCK; HESS, GREGORY D.; THACKER, SIDDHARTH - In: Economics and Politics 18 (2006) 3, pp. 237-267
We develop a model to explore the inter-relationships between conflict and economic activity. We construct a simple two-period model where consumption and investment decisions are made in the presence of governments who consider initiating diversionary conflict to raise their chances of...