NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

International Conflict, Defense Spending and the Size of Countries

Alberto Alesina, Enrico Spolaore

NBER Working Paper No. 5694
Issued in August 1996
NBER Program(s):   ME

This paper provides a formal model of endogenous country formation and of choice of defense spending in a world with international conflict. The model is consistent with three observations. First, secessions and, more generally, break-up of countries should follow a reduction in the likelihood of international conflict. Second, the number of regional conflicts between smaller countries may increase as a result of the break-up of larger countries. Third, the size of the peace divided -- i.e., the reduction in the defense spending in a more peaceful world -- is limited by the process of country break-up.

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Document Object Identifier (DOI): 10.3386/w5694

Published: Alesina, Ablerto and Enrico Spolaore. "Conflict, Defense Spending, And The Number Of Nations," European Economic Review, 2006, v50(1,Jan), 91-120.

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