SecurityMarginal Revolutionabout 1 hour ago
The Allocative Cost of War
1 min read
A new working paper by Yuriy Gorodnichenko, Marvin Amann, and Oleksandr Talavera finds modern war damages economies by reducing allocative efficiency, not just destroying assets. Using firm-level data from Ukraine's 2022 invasion, the authors document a dramatic collapse in allocative productivity across Ukrainian districts.
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