The fiscal cost of conflict: Evidence from Afghanistan 2005–2017

B-Tier
Journal: World Development
Year: 2022
Volume: 157
Issue: C

Score contribution per author:

2.011 = (α=2.01 / 1 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

I use a novel monthly panel of provincially-collected central government revenues and conflict fatalities to estimate government revenues lost due to conflict in Afghanistan since 2005. Headline estimates are large, implying total revenue losses of $3bn since 2005 and that gains from peace would have been about 6 percent of GDP per year. That this is larger than estimates in cross-country studies reflects the uncommon intensity of the conflict in Afghanistan. The key challenge to identification is omitted variable bias, which I address by extending Powell’s (2021) generalized synthetic control method to a dynamic setting. This allows estimation of impulse response functions robust to a broad class of omitted variables bias.

Technical Details

RePEc Handle
repec:eee:wdevel:v:157:y:2022:i:c:s0305750x22001309
Journal Field
Development
Author Count
1
Added to Database
2026-01-24