International conflict, defense spending and the size of countries:

This paper provides a formal model of endogenous country formation and of choice of defense spending in a world with international conflict. The model is consistent with three observations. First, secessions and, more generally, break-up of countries should follow a reduction in the likelihood of in...

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Bibliographic Details
Main Authors: Alesina, Alberto 1957-2020 (Author), Spolaore, Enrico (Author)
Format: Book
Language:English
Published: Cambridge, Mass. 1996
Series:National Bureau of Economic Research <Cambridge, Mass.>: NBER working paper series 5694
Subjects:
Online Access:Volltext
Summary:This paper provides a formal model of endogenous country formation and of choice of defense spending in a world with international conflict. The model is consistent with three observations. First, secessions and, more generally, break-up of countries should follow a reduction in the likelihood of international conflict. Second, the number of regional conflicts between smaller countries may increase as a result of the break-up of larger countries. Third, the size of the peace divided -- i.e., the reduction in the defense spending in a more peaceful world -- is limited by the process of country break-up.
Physical Description:41, [14] S. graph. Darst.

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