The Allocative Cost of War
Why is war so economically costly? Our answer is that modern war lowers output not only by destroying productive factors, but also by making the surviving economy work less efficiently. Using uniquely comprehensive firm-level data collected during Russia’s full-scale invasion of Ukraine in 2022, we document a dramatic collapse in allocative productivity in Ukraine. To […] The post The Allocative Cost of War appeared first on Marginal REVOLUTION. CommentsIn reply to Dismalist. (Copilot:) Polis...
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Marginal Revolution (United States) | Sep 11, 2026
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