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An Insecure Economy under Ratio and Logistic Conflict Technologies

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  • Charles Anderton

    (Department of Economics, College of the Holy Cross)

Abstract

A model that integrates production, exchange, and conflict is used to theoretically investigate the economic behavior of groups that experience an erosion of security within a state. The focus of our investigation is the comparative effects of different conflict production functions (i.e., ratio and logistic) and parameters (i.e., weapons productivity, conflict decisiveness) on the predictions of the integrated economy model. The model shows how two major analytical categories of mainstream economics—production and exchange—can be a source of demand for arms as groups attempt to protect their economic opportunities in the face of intrastate insecurity. Conditions are also identified under which the gains from specialized production and exchange dampen the potential for conflict and hence serve as a form of conflict mitigation. Many of the results of the integrated model are shown to be quite sensitive to the technology of conflict.

Suggested Citation

  • Charles Anderton, 2000. "An Insecure Economy under Ratio and Logistic Conflict Technologies," Working Papers 0008, College of the Holy Cross, Department of Economics.
    • Handle: RePEc:hcx:wpaper:0008
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    File URL: https://onlinelibrary.wiley.com/doi/10.1111/1467-9361.00172
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    References listed on IDEAS

    as
    1. Hirshleifer, Jack, 1995. "Theorizing about conflict," Handbook of Defense Economics, in: Keith Hartley & Todd Sandler (ed.), Handbook of Defense Economics, edition 1, volume 1, chapter 7, pages 165-189, Elsevier.
    2. Anderton, Charles H., 1999. "Appropriation possibilities in a simple exchange economy," Economics Letters, Elsevier, vol. 63(1), pages 77-83, April.
    3. Anderton, Charles H & Anderton, Roxane A & Carter, John R, 1999. "Economic Activity in the Shadow of Conflict," Economic Inquiry, Western Economic Association International, vol. 37(1), pages 166-179, January.
    4. Charles Anderton, 2000. "Exchange of goods or exchange of blows? New directions in conflict and exchange," Defence and Peace Economics, Taylor & Francis Journals, vol. 11(1), pages 55-71.
    5. Hirshleifer, Jack, 1995. "Anarchy and Its Breakdown," Journal of Political Economy, University of Chicago Press, vol. 103(1), pages 26-52, February.
    6. Garfinkel,Michelle R. & Skaperdas,Stergios (ed.), 1996. "The Political Economy of Conflict and Appropriation," Cambridge Books, Cambridge University Press, number 9780521560634, January.
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    Cited by:

    1. Martin C. McGuire, 2010. "Economic Analysis and International Security," Public Policy Review, Policy Research Institute, Ministry of Finance Japan, vol. 6(2), pages 313-346, March.
    2. Raul Caruso, 2008. "Reciprocity in the shadow of threat," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 55(1), pages 91-111, April.
    3. Sakshi Gupta & Ram Singh, 2018. "On Existence and Properties of Pure-strategy Equilibria under Contests," Working papers 288, Centre for Development Economics, Delhi School of Economics.
    4. Caruso Raul, 2006. "Conflict and Conflict Management with Interdependent Instruments and Asymmetric Stakes, (The Good-Cop and the Bad-Cop Game)," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 12(1), pages 1-53, September.
    5. Clémence Vergne & Camille Laville, 2018. "Comment analyser le risque sociopolitique ? Une composante clé du risque-pays," Post-Print hal-02358975, HAL.
    6. Raul Caruso, 2007. "Continuing Conflict and Stalemate: A note," Economics Bulletin, AccessEcon, vol. 4(17), pages 1-8.
    7. María Cubel & Santiago Sanchez-Pages, 2014. "Difference-form group contests," Working Papers 2014/6, Institut d'Economia de Barcelona (IEB).
    8. Hernando Zuleta & Juanita Villaveces, 2008. "Conflict and negotiation: a game theoretical approach," Documentos de Trabajo 5148, Universidad del Rosario.
    9. Raul Caruso, 2006. "A Trade Institution as a Peaceful Institution? A Contribution to Integrative Theory," Conflict Management and Peace Science, Peace Science Society (International), vol. 23(1), pages 53-72, February.
    10. Raul Caruso, 2004. "A Trade Institution as a Peaceful Institution?," Others 0406003, University Library of Munich, Germany, revised 02 May 2005.
    11. Paul Dunne & Maria del Carmen Garcia-Alonso & Paul Levine & Ron Smith, 2007. "Determining The Defence Industrial Base," Defence and Peace Economics, Taylor & Francis Journals, vol. 18(3), pages 199-221.
    12. Vahabi,Mehrdad, 2019. "The Political Economy of Predation," Cambridge Books, Cambridge University Press, number 9781107591370, January.
    13. Dario Maimone Ansaldo Patti & Pietro Navarra & Giuseppe Sobbrio, 2022. "Insecure Property Rights and Conflicts: How to Solve Them?," Mathematics, MDPI, vol. 11(1), pages 1-32, December.
    14. repec:ebl:ecbull:v:4:y:2007:i:17:p:1-8 is not listed on IDEAS
    15. María Cubel & Santiago Sanchez-Pages, 2014. "Difference-form group contests," Working Papers 2014/6, Institut d'Economia de Barcelona (IEB).
    16. Johannes Münster & Klaas Staal, 2011. "War with Outsiders Makes Peace Inside," Conflict Management and Peace Science, Peace Science Society (International), vol. 28(2), pages 91-110, April.
    17. Todd Sandler, 2000. "Economic Analysis of Conflict," Journal of Conflict Resolution, Peace Science Society (International), vol. 44(6), pages 723-729, December.

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