diamond exports in general from the war zones. Design/methodology/approach – A trade-theoretic model of two open economies … which are in conflict with each other was constructed. War efforts, which involve the use of soldiers and arms, are … determined endogenously. The purpose of war is the capture of land containing a natural resource like diamond, but the costs are …

diamond exports in general from the war zones. Design/methodology/approach – A trade‐theoretic model of two open economies … which are in conflict with each other was constructed. War efforts, which involve the use of soldiers and arms, are … determined endogenously. The purpose of war is the capture of land containing a natural resource like diamond, but the costs are …

We analyze the effects of large war episodes (world wars) on the macroeconomic dynamics of four advanced countries … dataset is taken from Piketty and Zucman (2014) and goes back to the XIX-th century. A typical war episode is well captured by … massively, trade collapses, the discount factor goes up first and then falls significantly, and capital depreciation increases …

. Conflict is also associated with dramatic declines in official trade, with exports (imports) estimated to be 58 (34) percent …