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Project Citation: 

Bazzi, Samuel, and Blattman, Christopher. Replication data for: Economic Shocks and Conflict: Evidence from Commodity Prices. Nashville, TN: American Economic Association [publisher], 2014. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2019-10-12. https://doi.org/10.3886/E114306V1

Project Description

Summary:  View help for Summary Higher national incomes are correlated with political stability. Is this relationship causal? We test three theories linking income to conflict with new data on export price shocks. Price shocks have no effect on new conflict, even large shocks in high-risk nations. Rising prices, however, weakly lead to shorter, less deadly wars. This evidence contradicts the theory that rising state revenues incentivize state capture, but supports the idea that rising revenues improve counterinsurgency capacity and reduce individual incentives to fight in existing conflicts. Conflict onset and continuation follow different processes. Ignoring this time dependence generates mistaken conclusions about income and instability.

Scope of Project

JEL Classification:  View help for JEL Classification
      D72 Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
      D74 Conflict; Conflict Resolution; Alliances; Revolutions
      O13 Economic Development: Agriculture; Natural Resources; Energy; Environment; Other Primary Products
      O17 Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
      O19 International Linkages to Development; Role of International Organizations
      Q02 Commodity Markets
      Q34 Natural Resources and Domestic and International Conflicts


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