Events at CERGE-EI
Wednesday, 31 January, 2024 | 10:00 | Room 402 | Job Talk Seminar
Lavinia Piemontese (Bocconi University) "The Economic Costs of Conflict: A Production Network Approach"
Bocconi University, Italy
Authors: Lavinia Piemontese, Mathieu Couttenier, Nathalie Monnet
Abstract: We investigate the Maoist insurgency in Eastern India in 2000-2009 to develop a novel approach for estimating the economic costs of conflict. In this approach, the production network serves as a primary mechanism through which the disruptive effects of localized conflict spread to peaceful areas. By applying a model of production networks, we aim to quantify the overall impact of conflict, taking network propagation into account. Our key finding reveals that, regardless of the degree of conflict-induced distortion experienced by firms in conflict-affected areas, 73% of the total output loss can be attributed to network propagation.
Jel Classification: D22, D74, O12, O47
Keywords: Conflict, Firms, Production Network, Aggregate Output Loss
