economics 270c development economics lecture 8 – … 8 outline (1) empirical links between war and...

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Economics 270c Development Economics Lecture 8 – March 7, 2007

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Page 1: Economics 270c Development Economics Lecture 8 – … 8 outline (1) Empirical links between war and economic development (2) Does civil war have economic causes? Miguel, Satyanath,

Econ

omic

s 27

0cD

evel

opm

ent E

cono

mic

s

Lect

ure

8 –

Mar

ch 7

, 200

7

Page 2: Economics 270c Development Economics Lecture 8 – … 8 outline (1) Empirical links between war and economic development (2) Does civil war have economic causes? Miguel, Satyanath,

Eco

nom

ics

270c

: Lec

ture

82

Lect

ure

1: G

loba

l pat

tern

s of

eco

nom

ic g

row

th a

nd d

evel

opm

ent (

1/16

)

The

polit

ical

eco

nom

y of

dev

elop

men

tLe

ctur

e 2:

Ineq

ualit

y an

d gr

owth

(1/2

3)Le

ctur

e 3:

Cor

rupt

ion

(1/3

0) –

Gue

st le

ctur

e by

Ben

Olk

enLe

ctur

e 4:

His

tory

and

inst

itutio

ns (2

/6)

Lect

ure

5: D

emoc

racy

and

dev

elop

men

t (2/

13)

Lect

ure

6: E

thni

c an

d so

cial

div

isio

ns (2

/20)

Lect

ure

7: E

cono

mic

The

orie

s of

Con

flict

(2/2

7)Le

ctur

e 8:

War

and

Eco

nom

ic D

evel

opm

ent (

3/6)

Hum

an re

sour

ces

Lect

ure

9: H

uman

cap

ital a

nd in

com

e gr

owth

(3/1

3)Le

ctur

e 10

: Inc

reas

ing

hum

an c

apita

l (3/

20)

Lect

ure

11: H

ealth

and

nut

ritio

n (4

/3)

Lect

ure

12: T

he E

cono

mic

s of

HIV

/AID

S (4

/10)

Lect

ure

13: L

abor

mar

kets

and

mig

ratio

n (4

/17)

Lect

ure

14: E

nviro

nmen

t and

dev

elop

men

t (4/

24)

Lect

ure

15: S

ocia

l Lea

rnin

g an

d Te

chno

logy

Ado

ptio

n (5

/1)

Page 3: Economics 270c Development Economics Lecture 8 – … 8 outline (1) Empirical links between war and economic development (2) Does civil war have economic causes? Miguel, Satyanath,

Eco

nom

ics

270c

: Lec

ture

83

•R

efer

ee re

port

#3 is

due

nex

t wee

k

Page 4: Economics 270c Development Economics Lecture 8 – … 8 outline (1) Empirical links between war and economic development (2) Does civil war have economic causes? Miguel, Satyanath,

Eco

nom

ics

270c

: Lec

ture

84

Page 5: Economics 270c Development Economics Lecture 8 – … 8 outline (1) Empirical links between war and economic development (2) Does civil war have economic causes? Miguel, Satyanath,

Eco

nom

ics

270c

: Lec

ture

85

(1) E

mpi

rical

link

s be

twee

n w

ar a

nd e

cono

mic

dev

elop

men

t(2

) Doe

s ci

vil w

ar h

ave

econ

omic

cau

ses?

Mig

uel,

Sat

yana

th, a

nd S

erge

nti(

2004

)(3

) Wha

t are

the

econ

omic

lega

cies

of w

ar?

Dav

is a

nd W

eins

tein

(200

2), a

nd B

lattm

an(2

006)

Lect

ure

8 ou

tline

Page 6: Economics 270c Development Economics Lecture 8 – … 8 outline (1) Empirical links between war and economic development (2) Does civil war have economic causes? Miguel, Satyanath,

Eco

nom

ics

270c

: Lec

ture

86

•S

ince

198

0 ab

out 6

0% o

f all

coun

tries

hav

e ha

d at

leas

t on

e ye

ar o

f arm

ed c

ivil

conf

lict,

with

at l

east

25

battl

e de

aths

(PR

IO/U

ppsa

la d

atas

et)

•R

ates

are

par

ticul

arly

hig

h in

less

dev

elop

ed re

gion

s:

appr

oxim

atel

y 70

% in

Asi

a, S

ub-S

ahar

an A

frica

(1) V

iole

nce

and

econ

omic

dev

elop

men

t

Page 7: Economics 270c Development Economics Lecture 8 – … 8 outline (1) Empirical links between war and economic development (2) Does civil war have economic causes? Miguel, Satyanath,

Eco

nom

ics

270c

: Lec

ture

87

•S

ince

198

0 ab

out 6

0% o

f all

coun

tries

hav

e ha

d at

leas

t on

e ye

ar o

f arm

ed c

ivil

conf

lict,

with

at l

east

25

battl

e de

aths

(PR

IO/U

ppsa

la d

atas

et)

•R

ates

are

par

ticul

arly

hig

h in

less

dev

elop

ed re

gion

s:

appr

oxim

atel

y 70

% in

Asi

a, S

ub-S

ahar

an A

frica

•A

re th

ese

conf

licts

larg

ely

the

caus

e of

thei

r pov

erty

, or

the

cons

eque

nce

of p

over

ty?

(Or b

oth

–or

nei

ther

?)--

End

ogen

eity

and

omitt

ed v

aria

bles

are

key

issu

es in

th

e es

timat

ion

of th

ese

rela

tions

hips

(1) V

iole

nce

and

econ

omic

dev

elop

men

t

Page 8: Economics 270c Development Economics Lecture 8 – … 8 outline (1) Empirical links between war and economic development (2) Does civil war have economic causes? Miguel, Satyanath,

Eco

nom

ics

270c

: Lec

ture

88

•To

day

focu

s on

two

of th

e qu

estio

ns fr

om la

st le

ctur

e:

(1) W

hy d

o ci

vil w

ars

occu

r (w

hen

they

are

so

dest

ruct

ive)

?

(1) V

iole

nce

and

econ

omic

dev

elop

men

t

Page 9: Economics 270c Development Economics Lecture 8 – … 8 outline (1) Empirical links between war and economic development (2) Does civil war have economic causes? Miguel, Satyanath,

Eco

nom

ics

270c

: Lec

ture

89

•To

day

focu

s on

two

of th

e qu

estio

ns fr

om la

st le

ctur

e:

(1) W

hy d

o ci

vil w

ars

occu

r (w

hen

they

are

so

dest

ruct

ive)

?

(2) W

hat i

s w

ar’s

impa

ct o

n la

ter e

cono

mic

dev

elop

men

t?

And

how

doe

s th

is v

ary

acro

ss c

ount

ries

and

conf

licts

?

(1) V

iole

nce

and

econ

omic

dev

elop

men

t

Page 10: Economics 270c Development Economics Lecture 8 – … 8 outline (1) Empirical links between war and economic development (2) Does civil war have economic causes? Miguel, Satyanath,

Eco

nom

ics

270c

: Lec

ture

810

•W

hat i

s th

e im

pact

of i

ncom

e sh

ocks

on

the

likel

ihoo

d of

ci

vil w

ar in

Afri

ca d

urin

g 19

81-1

999?

(2) M

igue

l, S

atya

nath

, Ser

gent

i(20

04, JPE

)

Page 11: Economics 270c Development Economics Lecture 8 – … 8 outline (1) Empirical links between war and economic development (2) Does civil war have economic causes? Miguel, Satyanath,

Eco

nom

ics

270c

: Lec

ture

811

•W

hat i

s th

e im

pact

of i

ncom

e sh

ocks

on

the

likel

ihoo

d of

ci

vil w

ar in

Afri

ca d

urin

g 19

81-1

999?

•B

uild

s on

ear

lier w

ork

by C

ollie

r and

Hoe

ffler

(199

8), a

nd

Fear

onan

d La

itin

(200

3, APSR

)--

“Gre

ed v

ersu

s gr

ieva

nce”

deb

ate:

are

arm

ed g

roup

s pr

imar

ily d

riven

by

priv

ate

econ

omic

retu

rns

(e.g

., lo

otin

g, d

iam

onds

) or b

y id

eolo

gica

l mot

ivat

ions

?

(2) M

igue

l, S

atya

nath

, Ser

gent

i(20

04, JPE

)

Page 12: Economics 270c Development Economics Lecture 8 – … 8 outline (1) Empirical links between war and economic development (2) Does civil war have economic causes? Miguel, Satyanath,

Eco

nom

ics

270c

: Lec

ture

812

•W

hat i

s th

e im

pact

of i

ncom

e sh

ocks

on

the

likel

ihoo

d of

ci

vil w

ar in

Afri

ca d

urin

g 19

81-1

999?

•B

uild

s on

ear

lier w

ork

by C

ollie

r and

Hoe

ffler

(199

8), a

nd

Fear

onan

d La

itin

(200

3, APSR

)--

“Gre

ed v

ersu

s gr

ieva

nce”

deb

ate:

are

arm

ed g

roup

s pr

imar

ily d

riven

by

priv

ate

econ

omic

retu

rns

(e.g

., lo

otin

g, d

iam

onds

) or b

y id

eolo

gica

l mot

ivat

ions

?

•O

f cou

rse

thes

e tw

o ex

plan

atio

ns a

re n

ot m

utua

lly

excl

usiv

e, a

nd b

oth

coul

d ap

ply

to s

ome

degr

ee in

pa

rticu

lar c

ases

. Fin

ding

a li

nk b

etw

een

pove

rty a

nd

viol

ence

doe

s no

t res

olve

the

deba

te

(2) M

igue

l, S

atya

nath

, Ser

gent

i(20

04, JPE

)

Page 13: Economics 270c Development Economics Lecture 8 – … 8 outline (1) Empirical links between war and economic development (2) Does civil war have economic causes? Miguel, Satyanath,

Eco

nom

ics

270c

: Lec

ture

813

•Th

e tw

o ce

ntra

l eco

nom

etric

iden

tific

atio

n pr

oble

ms:

(1) E

ndog

enei

ty: c

ivil

war

s (o

r the

risk

of f

utur

e ci

vil w

ar)

can

affe

ct e

cono

mic

con

ditio

ns, t

hrou

gh in

vest

men

t, tra

de, p

opul

atio

n di

spla

cem

ent,

dest

ruct

ion

of c

apita

l

(2) O

mitt

ed v

aria

ble

bias

: cou

ntrie

s w

ith e

ffect

ive

inst

itutio

ns (o

r lea

ders

) may

bot

h ha

ve b

ette

r eco

nom

ic

outc

omes

and

be

mor

e pe

acef

ul

(2) M

igue

l, S

atya

nath

, Ser

gent

i(20

04, JPE

)

Page 14: Economics 270c Development Economics Lecture 8 – … 8 outline (1) Empirical links between war and economic development (2) Does civil war have economic causes? Miguel, Satyanath,

Eco

nom

ics

270c

: Lec

ture

814

•M

SS

(200

4) tr

y to

dea

l with

thes

e co

ncer

ns in

turn

:(1

) End

ogen

eity

:--

Use

rain

fall

shoc

ks a

s IV

s fo

r eco

nom

ic g

row

th ra

tes.

Th

is is

reas

onab

le in

larg

ely

agra

rian

soci

etie

s w

here

m

ost h

ouse

hold

s re

ly o

n ra

in-fe

d ag

ricul

ture

--R

ainf

all i

s cl

early

exo

geno

us to

civ

il co

nflic

t

(2) M

igue

l, S

atya

nath

, Ser

gent

i(20

04, JPE

)

Page 15: Economics 270c Development Economics Lecture 8 – … 8 outline (1) Empirical links between war and economic development (2) Does civil war have economic causes? Miguel, Satyanath,

Eco

nom

ics

270c

: Lec

ture

815

•M

SS

(200

4) tr

y to

dea

l with

thes

e co

ncer

ns in

turn

:(1

) End

ogen

eity

:--

Use

rain

fall

shoc

ks a

s IV

s fo

r eco

nom

ic g

row

th ra

tes.

Th

is is

reas

onab

le in

larg

ely

agra

rian

soci

etie

s w

here

m

ost h

ouse

hold

s re

ly o

n ra

in-fe

d ag

ricul

ture

--R

ainf

all i

s cl

early

exo

geno

us to

civ

il co

nflic

t--

Is th

e ex

clus

ion

rest

rictio

n cr

edib

le?

How

els

e co

uld

rain

fall

affe

ct c

ivil

war

, oth

er th

an th

roug

h ec

onom

ic

grow

th ra

tes?

Som

e pr

efer

the

redu

ced

form

resu

lts to

th

e IV

resu

lts

(2) M

igue

l, S

atya

nath

, Ser

gent

i(20

04, JPE

)

Page 16: Economics 270c Development Economics Lecture 8 – … 8 outline (1) Empirical links between war and economic development (2) Does civil war have economic causes? Miguel, Satyanath,

Eco

nom

ics

270c

: Lec

ture

816

•M

SS

(200

4) tr

y to

dea

l with

thes

e co

ncer

ns in

turn

:(2

) Om

itted

var

iabl

e bi

as:

--In

clud

e co

untry

fixe

d ef

fect

s an

d co

untry

spe

cific

tim

e tre

nds

in m

ost s

peci

ficat

ions

, to

capt

ure

leve

ls (a

nd

trend

) diff

eren

ces

acro

ss c

ount

ries

(2) M

igue

l, S

atya

nath

, Ser

gent

i(20

04, JPE

)

Page 17: Economics 270c Development Economics Lecture 8 – … 8 outline (1) Empirical links between war and economic development (2) Does civil war have economic causes? Miguel, Satyanath,

Eco

nom

ics

270c

: Lec

ture

817

•U

se s

tand

ard

cros

s-co

untry

inco

me

data

, with

all

of it

s fla

ws

and

likel

y m

easu

rem

ent e

rror

. Thi

s is

ano

ther

po

tent

ial r

atio

nale

for t

he IV

app

roac

h, to

redu

ce th

e at

tenu

atio

n bi

as

(2) M

igue

l, S

atya

nath

, Ser

gent

i(20

04, JPE

)

Page 18: Economics 270c Development Economics Lecture 8 – … 8 outline (1) Empirical links between war and economic development (2) Does civil war have economic causes? Miguel, Satyanath,

Eco

nom

ics

270c

: Lec

ture

818

•U

se s

tand

ard

cros

s-co

untry

inco

me

data

, with

all

of it

s fla

ws

and

likel

y m

easu

rem

ent e

rror

. Thi

s is

ano

ther

po

tent

ial r

atio

nale

for t

he IV

app

roac

h, to

redu

ce th

e at

tenu

atio

n bi

as

•P

RIO

/Upp

sala

con

flict

dat

abas

e –

focu

s on

the

low

er 2

5 de

ath

conf

lict t

hres

hold

. Thi

s se

ems

mos

t app

ropr

iate

for

mos

t (sm

all)

Afri

can

coun

tries

•74

3 ob

serv

atio

ns. S

ome

inte

rest

ing

case

s –

e.g.

, D

emoc

ratic

Rep

ublic

of C

ongo

–ar

e m

issi

ng to

o m

uch

econ

omic

dat

a to

be

incl

uded

. 27%

of c

ount

ry-y

ear

case

s ha

d co

nflic

t. 38

con

flict

s st

arte

d du

ring

the

perio

d

(2) M

igue

l, S

atya

nath

, Ser

gent

i(20

04, JPE

)

Page 19: Economics 270c Development Economics Lecture 8 – … 8 outline (1) Empirical links between war and economic development (2) Does civil war have economic causes? Miguel, Satyanath,

Eco

nom

ics

270c

: Lec

ture

819

•G

loba

l Pre

cipi

tatio

n C

limat

olog

y P

roje

ct (G

PC

P) m

onth

ly

rain

fall

data

sin

ce 1

979,

use

s bo

th s

atel

lite

and

rain

fall

gaug

e da

ta

•Fo

cus

on y

ear t

o ye

ar c

hang

es in

rain

fall

for t

he c

ount

ry

as a

who

le. T

his

has

the

stro

nges

t firs

t sta

ge p

redi

ctiv

e po

wer

for e

cono

mic

gro

wth

rate

s –

stro

nger

than

, say

, us

ing

an in

dica

tor f

or e

xtre

me

rain

fall

shoc

ks o

nly

(2) M

igue

l, S

atya

nath

, Ser

gent

i(20

04, JPE

)

Page 20: Economics 270c Development Economics Lecture 8 – … 8 outline (1) Empirical links between war and economic development (2) Does civil war have economic causes? Miguel, Satyanath,

Eco

nom

ics

270c

: Lec

ture

820

Page 21: Economics 270c Development Economics Lecture 8 – … 8 outline (1) Empirical links between war and economic development (2) Does civil war have economic causes? Miguel, Satyanath,

Eco

nom

ics

270c

: Lec

ture

821

Page 22: Economics 270c Development Economics Lecture 8 – … 8 outline (1) Empirical links between war and economic development (2) Does civil war have economic causes? Miguel, Satyanath,

Eco

nom

ics

270c

: Lec

ture

822

Page 23: Economics 270c Development Economics Lecture 8 – … 8 outline (1) Empirical links between war and economic development (2) Does civil war have economic causes? Miguel, Satyanath,

Eco

nom

ics

270c

: Lec

ture

823

Page 24: Economics 270c Development Economics Lecture 8 – … 8 outline (1) Empirical links between war and economic development (2) Does civil war have economic causes? Miguel, Satyanath,

Eco

nom

ics

270c

: Lec

ture

824

Page 25: Economics 270c Development Economics Lecture 8 – … 8 outline (1) Empirical links between war and economic development (2) Does civil war have economic causes? Miguel, Satyanath,

Eco

nom

ics

270c

: Lec

ture

825

•P

ossi

ble

impl

icat

ions

for p

ublic

pol

icy:

gov

ernm

ent a

nd

fore

ign

aid

shou

ld re

act r

apid

ly to

the

thre

at o

f eco

nom

ic

dow

ntur

ns in

poo

r cou

ntrie

s (e

.g.,

drou

ghts

, com

mod

ity

pric

e fa

lls).

Sm

all a

mou

nts

of a

id u

p fro

nt (“

prev

entio

n”)

coul

d be

muc

h ch

eape

r tha

n th

e po

st-w

ar “c

ure”

(2) M

igue

l, S

atya

nath

, Ser

gent

i(20

04, JPE

)

Page 26: Economics 270c Development Economics Lecture 8 – … 8 outline (1) Empirical links between war and economic development (2) Does civil war have economic causes? Miguel, Satyanath,

Eco

nom

ics

270c

: Lec

ture

826

•P

ossi

ble

impl

icat

ions

for p

ublic

pol

icy:

gov

ernm

ent a

nd

fore

ign

aid

shou

ld re

act r

apid

ly to

the

thre

at o

f eco

nom

ic

dow

ntur

ns in

poo

r cou

ntrie

s (e

.g.,

drou

ghts

, com

mod

ity

pric

e fa

lls).

Sm

all a

mou

nts

of a

id u

p fro

nt (“

prev

entio

n”)

coul

d be

muc

h ch

eape

r tha

n th

e po

st-w

ar “c

ure”

•S

houl

d yo

ung

men

be

targ

eted

for t

rans

fers

, sin

ce th

ey

pose

the

grea

test

thre

at o

f vio

lenc

e?

(2) M

igue

l, S

atya

nath

, Ser

gent

i(20

04, JPE

)

Page 27: Economics 270c Development Economics Lecture 8 – … 8 outline (1) Empirical links between war and economic development (2) Does civil war have economic causes? Miguel, Satyanath,

Eco

nom

ics

270c

: Lec

ture

827

•A

n ef

fort

to c

olle

ct d

ata

syst

emat

ical

ly a

cros

s co

untri

es

(bot

h “p

re”,

durin

g, a

nd p

ost c

onfli

ct”)

cou

ld h

ave

high

re

turn

s –

thin

k of

the

LSM

S o

r DH

S “m

ovem

ents

”--

Nec

essa

ry to

test

theo

ries

on c

onfli

ct c

ause

s

(2) M

icro

-dat

a co

llect

ion

in c

onfli

ct s

ettin

gs

Page 28: Economics 270c Development Economics Lecture 8 – … 8 outline (1) Empirical links between war and economic development (2) Does civil war have economic causes? Miguel, Satyanath,

Eco

nom

ics

270c

: Lec

ture

828

•A

n ef

fort

to c

olle

ct d

ata

syst

emat

ical

ly a

cros

s co

untri

es

(bot

h “p

re”,

durin

g, a

nd p

ost c

onfli

ct”)

cou

ld h

ave

high

re

turn

s –

thin

k of

the

LSM

S o

r DH

S “m

ovem

ents

”--

Nec

essa

ry to

test

theo

ries

on c

onfli

ct c

ause

s

•Th

ere

are

man

y di

fficu

lties

to d

oing

so:

(1) S

ome

surv

eys

wou

ld re

ly u

pon

retro

spec

tive

data

th

at m

ight

suf

fer f

rom

bia

s du

e to

ex

post

ratio

naliz

atio

n(2

) Sam

ples

wou

ld e

xclu

de th

ose

kille

d (o

r em

igra

ted)

du

ring

the

conf

lict

“sel

ectio

n bi

as” /

“sur

vivo

r bia

s”

(3) C

urre

nt id

eolo

gy /

know

ledg

e m

ay re

flect

pol

itica

l in

doct

rinat

ion

rece

ived

dur

ing

the

war

, lea

ding

the

anal

ysis

to o

vers

tate

the

role

of i

deol

ogy

(4) D

ata

colle

ctio

n m

ay b

e da

nger

ous

•W

ould

wan

t to

surv

ey c

omba

tant

s an

d ci

vilia

ns

(2) M

icro

-dat

a co

llect

ion

in c

onfli

ct s

ettin

gs

Page 29: Economics 270c Development Economics Lecture 8 – … 8 outline (1) Empirical links between war and economic development (2) Does civil war have economic causes? Miguel, Satyanath,

Eco

nom

ics

270c

: Lec

ture

829

•S

tudy

one

of t

he m

ost n

otor

ious

cas

es o

f war

-rel

ated

de

stru

ctio

n: th

e bo

mbi

ng o

f Jap

an (b

y th

e U

.S.)

durin

g W

WII,

incl

udin

g th

e tw

o at

omic

bom

bs

•H

ow d

o he

avily

bom

bed

citie

s co

mpa

re to

oth

ers,

in

term

s of

thei

r pos

t-war

pop

ulat

ion

grow

th?

1945

-196

5

(3) D

avis

and

Wei

nste

in (2

002,

AER

)

Page 30: Economics 270c Development Economics Lecture 8 – … 8 outline (1) Empirical links between war and economic development (2) Does civil war have economic causes? Miguel, Satyanath,

Eco

nom

ics

270c

: Lec

ture

830

•S

tudy

one

of t

he m

ost n

otor

ious

cas

es o

f war

-rel

ated

de

stru

ctio

n: th

e bo

mbi

ng o

f Jap

an (b

y th

e U

.S.)

durin

g W

WII,

incl

udin

g th

e tw

o at

omic

bom

bs

•H

ow d

o he

avily

bom

bed

citie

s co

mpa

re to

oth

ers,

in

term

s of

thei

r pos

t-war

pop

ulat

ion

grow

th?

1945

-196

5

•W

hy d

o so

me

citie

s gr

ow, a

nd n

ot o

ther

s?(1

) Inc

reas

ing

retu

rns

tem

pora

ry p

opul

atio

n sh

ifts

coul

d ha

ve p

erm

anen

t effe

cts

on p

opul

atio

n di

strib

utio

n(2

) Ran

dom

gro

wth

theo

ry(3

) Loc

atio

nalf

unda

men

tals

po

st-w

ar re

cove

ry b

ack

to p

re-w

ar p

opul

atio

n pa

ttern

s

(3) D

avis

and

Wei

nste

in (2

002,

AER

)

Page 31: Economics 270c Development Economics Lecture 8 – … 8 outline (1) Empirical links between war and economic development (2) Does civil war have economic causes? Miguel, Satyanath,

Eco

nom

ics

270c

: Lec

ture

831

•S

ampl

e of

303

Jap

anes

e ci

ties

with

pre

-war

pop

ulat

ion

over

30,

000.

Ann

ual d

ata

1925

-196

5

•E

xcep

tiona

l city

-leve

l dat

a on

dam

age

from

U.S

. bo

mbi

ng: p

ropo

rtion

of b

uild

ings

des

troye

d, p

ropo

rtion

of

resi

dent

s de

ad /

mis

sing

(3) D

avis

and

Wei

nste

in (2

002,

AER

)

Page 32: Economics 270c Development Economics Lecture 8 – … 8 outline (1) Empirical links between war and economic development (2) Does civil war have economic causes? Miguel, Satyanath,

Eco

nom

ics

270c

: Lec

ture

832

•S

ampl

e of

303

Jap

anes

e ci

ties

with

pre

-war

pop

ulat

ion

over

30,

000.

Ann

ual d

ata

1925

-196

5

•E

xcep

tiona

l city

-leve

l dat

a on

dam

age

from

U.S

. bo

mbi

ng: p

ropo

rtion

of b

uild

ings

des

troye

d, p

ropo

rtion

of

resi

dent

s de

ad /

mis

sing

--O

ver 3

00,0

00 c

ivili

ans

kille

d, o

ver 4

0% o

f pop

ulat

ion

of

the

66 c

ities

targ

eted

by

the

U.S

. wer

e m

ade

hom

eles

s by

the

bom

bing

, 2.2

mill

ion

build

ings

des

troye

d

•D

ata

on p

ublic

sec

tor r

econ

stru

ctio

n ex

pend

iture

s (n

ot a

gr

eat p

redi

ctor

of r

ecov

ery,

act

ually

, sin

ce u

ntou

ched

ru

ral a

reas

got

lots

of a

ssis

tanc

e)

(3) D

avis

and

Wei

nste

in (2

002,

AER

)

Page 33: Economics 270c Development Economics Lecture 8 – … 8 outline (1) Empirical links between war and economic development (2) Does civil war have economic causes? Miguel, Satyanath,

Eco

nom

ics

270c

: Lec

ture

833

•E

cono

met

ric id

entif

icat

ion

issu

es:

--Lo

ts o

f var

iatio

n ac

ross

citi

es: a

ppro

xim

atel

y 80

% o

f ci

ties

unto

uche

d, s

ome

for h

isto

rical

reas

ons

(e.g

., K

yoto

), so

me

to te

mpo

raril

y “s

ave”

for a

tom

ic w

eapo

ns

(e.g

., N

iigat

a), s

ome

out o

f ran

ge o

f U.S

. bom

bers

(e.g

., S

appo

ro)

(3) D

avis

and

Wei

nste

in (2

002,

AER

)

Page 34: Economics 270c Development Economics Lecture 8 – … 8 outline (1) Empirical links between war and economic development (2) Does civil war have economic causes? Miguel, Satyanath,

Eco

nom

ics

270c

: Lec

ture

834

•E

cono

met

ric id

entif

icat

ion

issu

es:

--Lo

ts o

f var

iatio

n ac

ross

citi

es: a

ppro

xim

atel

y 80

% o

f ci

ties

unto

uche

d, s

ome

for h

isto

rical

reas

ons

(e.g

., K

yoto

), so

me

to te

mpo

raril

y “s

ave”

for a

tom

ic w

eapo

ns

(e.g

., N

iigat

a), s

ome

out o

f ran

ge o

f U.S

. bom

bers

(e.g

., S

appo

ro)

--B

ombi

ng is

not

rand

om –

did

the

U.S

. bom

b ci

ties

with

th

e be

st p

opul

atio

n (a

nd e

cono

mic

?) g

row

th p

rosp

ects

?

(3) D

avis

and

Wei

nste

in (2

002,

AER

)

Page 35: Economics 270c Development Economics Lecture 8 – … 8 outline (1) Empirical links between war and economic development (2) Does civil war have economic causes? Miguel, Satyanath,

Eco

nom

ics

270c

: Lec

ture

835

Page 36: Economics 270c Development Economics Lecture 8 – … 8 outline (1) Empirical links between war and economic development (2) Does civil war have economic causes? Miguel, Satyanath,

Eco

nom

ics

270c

: Lec

ture

836

Page 37: Economics 270c Development Economics Lecture 8 – … 8 outline (1) Empirical links between war and economic development (2) Does civil war have economic causes? Miguel, Satyanath,

Eco

nom

ics

270c

: Lec

ture

837

Page 38: Economics 270c Development Economics Lecture 8 – … 8 outline (1) Empirical links between war and economic development (2) Does civil war have economic causes? Miguel, Satyanath,

Eco

nom

ics

270c

: Lec

ture

838

Page 39: Economics 270c Development Economics Lecture 8 – … 8 outline (1) Empirical links between war and economic development (2) Does civil war have economic causes? Miguel, Satyanath,

Eco

nom

ics

270c

: Lec

ture

839

Page 40: Economics 270c Development Economics Lecture 8 – … 8 outline (1) Empirical links between war and economic development (2) Does civil war have economic causes? Miguel, Satyanath,

Eco

nom

ics

270c

: Lec

ture

840

•Ja

pan

citie

s re

cove

red

rapi

dly

from

mas

sive

bom

bing

--S

o di

d G

erm

any

(Bra

kman

et a

l 200

4), a

nd V

ietn

am

(Mig

uel a

nd R

olan

d 20

06).

We

find

reco

very

als

o in

per

ca

pita

con

sum

ptio

n le

vels

pos

t-war

(3) D

avis

and

Wei

nste

in (2

002,

AER

)

Page 41: Economics 270c Development Economics Lecture 8 – … 8 outline (1) Empirical links between war and economic development (2) Does civil war have economic causes? Miguel, Satyanath,

Eco

nom

ics

270c

: Lec

ture

841

•Ja

pan

citie

s re

cove

red

rapi

dly

from

mas

sive

bom

bing

--S

o di

d G

erm

any

(Bra

kman

et a

l 200

4), a

nd V

ietn

am

(Mig

uel a

nd R

olan

d 20

06).

We

find

reco

very

als

o in

per

ca

pita

con

sum

ptio

n le

vels

pos

t-war

•B

ut th

ese

are

all e

cono

mic

“suc

cess

sto

ries”

, with

stro

ng

cent

ral g

over

nmen

t ins

titut

ions

. Wha

t are

the

econ

omic

le

gaci

es o

f war

in A

frica

, whe

re s

tate

inst

itutio

ns a

re

wea

ker?

The

lega

cies

of c

ivil

war

s?--

Thes

e qu

estio

ns a

re d

iffic

ult t

o an

swer

due

to d

ata

limita

tions

: the

re a

re n

o de

taile

d da

ta o

n w

ar d

amag

e /

impa

cts

in S

omal

ia o

r Con

go

(3) D

avis

and

Wei

nste

in (2

002,

AER

)

Page 42: Economics 270c Development Economics Lecture 8 – … 8 outline (1) Empirical links between war and economic development (2) Does civil war have economic causes? Miguel, Satyanath,

Eco

nom

ics

270c

: Lec

ture

842

•O

ne p

artic

ular

lega

cy o

f civ

il w

ar in

Afri

ca re

late

s to

the

plig

ht o

f chi

ld s

oldi

ers,

usu

ally

abd

ucte

d fro

m h

ome

by

arm

ed g

roup

s be

twee

n ag

es o

f 9-1

4

•W

hat i

mpa

ct d

oes

abdu

ctio

n ha

ve th

ese

child

ren’

s la

ter

life

outc

omes

–ed

ucat

ion,

labo

r mar

ket e

arni

ngs,

men

tal

wel

lbei

ng?

(1) B

lattm

an(2

006)

Page 43: Economics 270c Development Economics Lecture 8 – … 8 outline (1) Empirical links between war and economic development (2) Does civil war have economic causes? Miguel, Satyanath,

Eco

nom

ics

270c

: Lec

ture

843

•O

ne p

artic

ular

lega

cy o

f civ

il w

ar in

Afri

ca re

late

s to

the

plig

ht o

f chi

ld s

oldi

ers,

usu

ally

abd

ucte

d fro

m h

ome

by

arm

ed g

roup

s be

twee

n ag

es o

f 9-1

4

•W

hat i

mpa

ct d

oes

abdu

ctio

n ha

ve th

ese

child

ren’

s la

ter

life

outc

omes

–ed

ucat

ion,

labo

r mar

ket e

arni

ngs,

men

tal

wel

lbei

ng?

•A

n am

azin

g da

ta c

olle

ctio

n ef

fort,

whi

le th

e ci

vil w

ar w

as

still

goi

ng o

n in

nor

ther

n U

gand

a

•Th

e ke

y ec

onom

etric

issu

e is

the

poss

ibili

ty o

f non

-ra

ndom

abd

uctio

n

(1) B

lattm

an(2

006)

Page 44: Economics 270c Development Economics Lecture 8 – … 8 outline (1) Empirical links between war and economic development (2) Does civil war have economic causes? Miguel, Satyanath,

Eco

nom

ics

270c

: Lec

ture

844

Page 45: Economics 270c Development Economics Lecture 8 – … 8 outline (1) Empirical links between war and economic development (2) Does civil war have economic causes? Miguel, Satyanath,

Eco

nom

ics

270c

: Lec

ture

845

Page 46: Economics 270c Development Economics Lecture 8 – … 8 outline (1) Empirical links between war and economic development (2) Does civil war have economic causes? Miguel, Satyanath,

Eco

nom

ics

270c

: Lec

ture

846

•A

bduc

ted

indi

vidu

als

have

less

sch

oolin

g at

tain

men

t, lo

wer

wag

es, a

nd m

ore

men

tal h

ealth

pro

blem

s af

ter

thei

r ret

urn

hom

e

•B

ut th

ese

indi

vidu

als

also

who

incr

ease

d in

volv

emen

t in

publ

ic a

ffairs

and

com

mun

ity a

ctiv

ities

(3) B

lattm

an(2

006)

Page 47: Economics 270c Development Economics Lecture 8 – … 8 outline (1) Empirical links between war and economic development (2) Does civil war have economic causes? Miguel, Satyanath,

Eco

nom

ics

270c

: Lec

ture

847

•A

bduc

ted

indi

vidu

als

have

less

sch

oolin

g at

tain

men

t, lo

wer

wag

es, a

nd m

ore

men

tal h

ealth

pro

blem

s af

ter

thei

r ret

urn

hom

e

•B

ut th

ese

indi

vidu

als

also

who

incr

ease

d in

volv

emen

t in

publ

ic a

ffairs

and

com

mun

ity a

ctiv

ities

•Th

is e

choe

s a

resu

lt fro

m S

ierr

a Le

one

(Bel

low

s an

d M

igue

l 200

6). W

e fin

d th

at p

eopl

e w

hose

hou

seho

lds’

w

ere

dire

ctly

affe

cted

by

viol

ence

dur

ing

the

war

are

m

ore

polit

ical

ly k

now

ledg

eabl

e, p

artic

ipat

e m

ore

in lo

cal

publ

ic g

oods

pro

visi

on, a

nd b

elon

g to

pol

itica

l com

mun

ity

grou

ps. “

Pos

t-tra

umat

ic g

row

th”?

(3) B

lattm

an(2

006)

Page 48: Economics 270c Development Economics Lecture 8 – … 8 outline (1) Empirical links between war and economic development (2) Does civil war have economic causes? Miguel, Satyanath,

Eco

nom

ics

270c

: Lec

ture

848

Whi

tebo

ard

#1

Page 49: Economics 270c Development Economics Lecture 8 – … 8 outline (1) Empirical links between war and economic development (2) Does civil war have economic causes? Miguel, Satyanath,

Eco

nom

ics

270c

: Lec

ture

849

Whi

tebo

ard

#2

Page 50: Economics 270c Development Economics Lecture 8 – … 8 outline (1) Empirical links between war and economic development (2) Does civil war have economic causes? Miguel, Satyanath,

Eco

nom

ics

270c

: Lec

ture

850

Whi

tebo

ard

#3

Page 51: Economics 270c Development Economics Lecture 8 – … 8 outline (1) Empirical links between war and economic development (2) Does civil war have economic causes? Miguel, Satyanath,

Eco

nom

ics

270c

: Lec

ture

851

Whi

tebo

ard

#4

Page 52: Economics 270c Development Economics Lecture 8 – … 8 outline (1) Empirical links between war and economic development (2) Does civil war have economic causes? Miguel, Satyanath,

Eco

nom

ics

270c

: Lec

ture

852

Whi

tebo

ard

#5

Page 53: Economics 270c Development Economics Lecture 8 – … 8 outline (1) Empirical links between war and economic development (2) Does civil war have economic causes? Miguel, Satyanath,

Eco

nom

ics

270c

: Lec

ture

853