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  • Seminar,

Lavinia Piemontese

Published on January 18, 2024 – Updated on January 24, 2024
Date
Le 25 January 2024 De 12:15 à 13:15
Location
Pôle Tertiaire - Site La Rotonde - 26 avenue Léon Blum - 63000 Clermont-Ferrand
Room 212

Research seminar. The Economic Costs of Conflict: a Production Network Approach

The Economic Costs of Conflict: a Production Network Approach


Lavinia Piemontese
Marie Sklodowska Curie Fellow 
CLEAN - Bocconi University

Coauthors: Mathieu Couttenier and 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.

Read the paper