@techreport{NBERw5694,
 title = "International Conflict, Defense Spending and the Size of Countries",
 author = "Alberto Alesina and Enrico Spolaore",
 institution = "National Bureau of Economic Research",
 type = "Working Paper",
 series = "Working Paper Series",
 number = "5694",
 year = "1996",
 month = "August",
 URL = "http://www.nber.org/papers/w5694",
 abstract = {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.},
}