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SecurityMarginal Revolutionabout 1 hour ago
The Allocative Cost of WarA 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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