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An Analysis of Economic Warfare

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  • Jeffrey Clemens

Abstract

I develop a framework for assessing economic warfare, which describes efforts to undermine adversaries' sources of income. The ability to target adversarial market participants is a primary determinant of the success of such efforts, as is the elasticity of demand in the relevant market. An application of the framework to US efforts to suppress the Afghan opium trade yields pessimistic results. Inelastic demand and poorly targeted enforcement have led these efforts to increase the drug trade resources flowing toward the Taliban.

Suggested Citation

  • Jeffrey Clemens, 2013. "An Analysis of Economic Warfare," American Economic Review, American Economic Association, vol. 103(3), pages 523-527, May.
    • Handle: RePEc:aea:aecrev:v:103:y:2013:i:3:p:523-27
    Note: DOI: 10.1257/aer.103.3.523
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    References listed on IDEAS

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    Cited by:

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    More about this item

    JEL classification:

    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • F51 - International Economics - - International Relations, National Security, and International Political Economy - - - International Conflicts; Negotiations; Sanctions
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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