NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Can Hearts and Minds Be Bought? The Economics of Counterinsurgency in Iraq

Eli Berman, Jacob N. Shapiro, Joseph H. Felter

NBER Working Paper No. 14606
Issued in December 2008
NBER Program(s):   IFM   PE   POL   PR

We develop and test an economic theory of insurgency motivated by the informal literature and by recent military doctrine. We model a three-way contest between violent rebels, a government seeking to minimize violence by mixing service provision and coercion, and civilians deciding whether to share information about insurgents. We test the model using panel data from Iraq on violence against Coalition and Iraqi forces, reconstruction spending, and community characteristics (sectarian status, socio-economic grievances, and natural resource endowments). Our results support the theory‘s predictions: improved service provision reduces insurgent violence, particularly for smaller projects and since the "surge" began in 2007.

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This paper was revised on December 5, 2011

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Document Object Identifier (DOI): 10.3386/w14606

Published: Eli Berman & Jacob N. Shapiro & Joseph H. Felter, 2011. "Can Hearts and Minds Be Bought? The Economics of Counterinsurgency in Iraq," Journal of Political Economy, University of Chicago Press, vol. 119(4), pages 766 - 819.

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