TY - JOUR AU - Berman,Eli AU - Shapiro,Jacob N. AU - Felter,Joseph H. TI - Can Hearts and Minds Be Bought? The Economics of Counterinsurgency in Iraq JF - National Bureau of Economic Research Working Paper Series VL - No. 14606 PY - 2008 Y2 - December 2008 UR - http://www.nber.org/papers/w14606 L1 - http://www.nber.org/papers/w14606.pdf N1 - Author contact info: Eli Berman Department of Economics, 508 University of California, San Diego 9500 Gilman Drive La Jolla, CA 92093 Tel: 858/534-2858 Fax: 858/534-7040 E-Mail: elib@ucsd.edu Jacob N. Shapiro Woodrow Wilson School of Public Policy and International Affairs Princeton University Robertson Hall Princeton, NJ 08544-1013 Tel: 608-258-2256 Fax: 609-258-0482 E-Mail: jns@princeton.edu Joseph Felter Hoover Institution 434 Galvez Mall Stanford University Stanford, CA 94305-6010 E-Mail: felter@hoover.stanford.edu AB - 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. ER -