Arbeitspapier

The True Cost of War

Measuring the economic impact of a war is a daunting task. Common indicators like casualties, infrastructure damages, and gross domestic product effects provide useful benchmarks, but they fail to capture the complex welfare effects of wars. This paper proposes a new method to estimate the welfare impact of conflicts and remedy common data constraints in conflict-affected environments. The method first estimates how agents regard spatial welfare differentials by voting with their feet, using pre-conflict data. Then, it infers a lower-bound estimate for the conflict-driven welfare shock from partially observed post-conflict migration patterns. A case study of the conflict in Eastern Ukraine between 2014 and 2019 shows a large lower-bound welfare loss for Donetsk residents equivalent to between 7.3 and 24.8 percent of life-time income depending on agents' time preferences.

Sprache
Englisch

Erschienen in
Series: IZA Discussion Papers ; No. 15900

Klassifikation
Wirtschaft
Conflict; Conflict Resolution; Alliances; Revolutions
Geographic Labor Mobility; Immigrant Workers
Health Insurance, Public and Private
Thema
conflict
revealed-preferences
internally displaced people

Ereignis
Geistige Schöpfung
(wer)
Artuc, Erhan
Gomez-Parra, Nicolas
Onder, Harun
Ereignis
Veröffentlichung
(wer)
Institute of Labor Economics (IZA)
(wo)
Bonn
(wann)
2023

Handle
Letzte Aktualisierung
10.03.2025, 11:45 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Artuc, Erhan
  • Gomez-Parra, Nicolas
  • Onder, Harun
  • Institute of Labor Economics (IZA)

Entstanden

  • 2023

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