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
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Englisch
- Erschienen in
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Series: IZA Discussion Papers ; No. 15900
- Klassifikation
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Wirtschaft
Conflict; Conflict Resolution; Alliances; Revolutions
Geographic Labor Mobility; Immigrant Workers
Health Insurance, Public and Private
- Thema
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conflict
revealed-preferences
internally displaced people
- Ereignis
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Geistige Schöpfung
- (wer)
-
Artuc, Erhan
Gomez-Parra, Nicolas
Onder, Harun
- Ereignis
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Veröffentlichung
- (wer)
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Institute of Labor Economics (IZA)
- (wo)
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Bonn
- (wann)
-
2023
- Handle
- Letzte Aktualisierung
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10.03.2025, 11:45 MEZ
Datenpartner
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Objekttyp
- Arbeitspapier
Beteiligte
- Artuc, Erhan
- Gomez-Parra, Nicolas
- Onder, Harun
- Institute of Labor Economics (IZA)
Entstanden
- 2023