Country survey XVIII: The two Koreas' defence economy |
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Authors: | Peter Stauvermann |
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Affiliation: | Department of Economics (Macroeconomics) , University of Dortmund , Dortmund, D-44221 Phone: 0231 755-3288 Fax: 0231 755-3288 E-mail: mak-pest@wiso.uni-dortmund.de |
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Abstract: | In this paper we change the structure of the basic conflict model. This makes it possible to found an economic theory of war and peace. Apart from few exceptions there exist no peace equilibria in the related literature of conflict theory. The aim of the paper is to fill this gap, because most parts of the world live in peace. Further we show that negotiations are possible to avoid a war. The main result is that war breaks out only if the distribution of resources and/or the effectiveness of weapons is sufficiently unequal. |
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Keywords: | International Conflict Peace Negotiations |
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