On the basis of a single-period, guns-versus-butter, complete-information model in which two agents dispute control over an insecure portion of their combined output, we study the choice between a peace agreement that maintains the status quo without arming (or unarmed peace) and open conflict...

We investigate the implications of preferential trade agreements (PTAs) for interstate confl ict. We set up a two-stage game with three competing importers, where fi rst, two of the countries decide on whether to initiate war against each other, and subsequently, all three countries select their...

We develop a dynamic theory of resource wars and study the conditions under which such wars can be prevented. Our focus is on the interaction between the scarcity of resources and the incentives for war in the presence of limited commitment. We show that a key parameter determining the...

We develop a dynamic theory of resource wars and study the conditions under which such wars can be prevented. The interaction between the scarcity of resources and the incentives for war in the presence of limited commitment is at the center of our theory. We show that a key parameter...

Seit Staaten um Macht streiten, setzen sie neben militärischen auch wirtschaftliche Mittel ein. Diese handelspolitischen Maßnahmen für geopolitische Zwecke werden im Folgenden diskutiert. Auf Grundlage von Russlands Angriffskrieg lassen sich für den Westen Eingriffe in den Freihandel...

Major geopolitical events have global repercussions, but their economic impact differs vastly across space. Analyzing stock market reactions to the war in Ukraine, we detect a large “proximity penalty.” Neighboring countries, on average, incurred an abnormal decline in equity indices of...

This paper analyzes the economic reconstruction of Iraq following the 2003, U.S-led invasion. Tracing the foundations and trajectory of the reconstruction, I explain how efforts have fallen prey to the four reconstruction traps identified by Coyne and Pellillo (2010). These traps have hampered...

A multi-stage model on the course of war is presented: Individual battles are modeled as private value all-pay auctions with asymmetric combatants of two opposing teams. These auctions are placed within a multi-stage framework with a tug-of-war structure. Such framing provides a microfounded...