An Analysis of Economic Warfare
- (pp. 523-27)
Abstract
I develop a framework for assessing economic warfare, which describes efforts to undermine adversaries' sources of income. The ability to target adversarial market participants is a primary determinant of the success of such efforts, as is the elasticity of demand in the relevant market. An application of the framework to US efforts to suppress the Afghan opium trade yields pessimistic results. Inelastic demand and poorly targeted enforcement have led these efforts to increase the drug trade resources flowing toward the Taliban.Citation
Clemens, Jeffrey. 2013. "An Analysis of Economic Warfare." American Economic Review, 103 (3): 523-27. DOI: 10.1257/aer.103.3.523Additional Materials
JEL Classification
- D74 Conflict; Conflict Resolution; Alliances
- F51 International Conflicts; Negotiations; Sanctions
- O13 Economic Development: Agriculture; Natural Resources; Energy; Environment; Other Primary Products
- O17 Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
- Q18 Agricultural Policy; Food Policy