The True Cost of War

dc.creatorArtuc, Erhan
dc.creatorGomez Parra, Nicolas
dc.creatorOnder, Harun
dc.date2022-11-02T16:59:44Z
dc.date2022-11-02T16:59:44Z
dc.date2022-10
dc.date.accessioned2026-07-01T00:35:50Z
dc.descriptionMeasuring the economic impact of a war is a daunting task. Common indicators like casualties, infrastructure damages, and gross domestic product effects provide useful benchmarks, but they fail to capture the complex welfare effects of wars. This paper proposes a new method to estimate the welfare impact of conflicts and remedy common data constraints in conflict-affected environments. The method first estimates how agents regard spatial welfare differentials by voting with their feet, using pre-conflict data. Then, it infers a lower-bound estimate for the conflict-driven welfare shock from partially observed post-conflict migration patterns. A case study of the conflict in Eastern Ukraine between 2014 and 2019 shows a large lower-bound welfare loss for Donetsk residents equivalent to between 7.28 and 24.79 percent of life-time income depending on agents’ time preferences.
dc.formattext/plain
dc.formatapplication/pdf
dc.identifierhttp://documents.worldbank.org/curated/en/099846210202232755/IDU01a8c972b0b88b046e00a6f80b32a5b75366e
dc.identifierhttps://hdl.handle.net/10986/38243
dc.identifier10.1596/1813-9450-10217
dc.identifier.urihttp://hdl.handle.net/123456789/406969
dc.languageEnglish
dc.languageen
dc.publisherWorld Bank, Washington, DC
dc.relationPolicy Research Working Papers;10217
dc.rightsCC BY 3.0 IGO
dc.rightshttp://creativecommons.org/licenses/by/3.0/igo
dc.rightsWorld Bank
dc.subjectCONFLICT
dc.subjectREVEALED-PREFERENCES
dc.subjectDATA CONSTRAINTS
dc.subjectDATA CONSTRAINTS INTERNALLY DISPLACED PEOPLE
dc.subjectBURDEN OF WAR
dc.subjectPSYCHO-SOCIAL WAR TRAUMA
dc.subjectECONOMIC IMPACT ASSESSMENTS OF WAR
dc.subjectARMED CONFLICT BURDEN
dc.subjectCONFLICT-RELATED INCOME SHOCK
dc.subjectFORCED DISPLACEMENT
dc.titleThe True Cost of War
dc.typeWorking Paper
dc.typeDocument de travail
dc.typeDocumento de trabajo

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