War and the Sectoral Distribution of Wealth: Evidence from United States Firms

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Authors: Isa Camyar and Bahar Ulupinar
Date: Dec. 2015
From: International Studies Quarterly(Vol. 59, Issue 4)
Publisher: Wiley Subscription Services, Inc.
Document Type: Report
Length: 339 words

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Byline: Isa Camyar, Bahar Ulupinar We examine the sector-specific distributive effect of war in the US economy. We argue that war generates sector-specific distributive effects via demand-side and supply-side mechanisms. We also claim that war's distributive effects materialize over time. Our empirical analysis utilizes a panel data set with 22,354 U.S. firms for the period from 1960 to 2007. It probes the impact of the U.S. Government's war making on firm performance in the U.S. arms and non-arms (hybrid and civilian) sectors in both the short and long runs. Our analysis shows that war does not always affect U.S. non-arms sectors adversely. Indeed, war exercises a positive total long-run effect for these sectors. It also finds that the supposedly positive distributive effect of war for U.S. arms sectors proves weaker than analysts generally assume. Finally, it demonstrates that war-induced demand and supply shocks can explain these results. Overall, our research sheds light on a relatively understudied aspect of war and advances the general understanding of the political microeconomy of war making. CAPTION(S): Table S1. Sector classification Table S2. The breakdown of the fama-french industry classification with corresponding standard industry classification (SIC) codes Table S3. The United States' war making from 1960 to 2007 Table S4. Variable definitions and data sources Table S5. Descriptive statistics Table S6a. Extended version of model 1 in Table 2 in the manuscript Table S6b. Extended version of model 2 in Table 2 in the manuscript Table S6c. Extended version of model 2 in Table 2 in the manuscript Table S7a. Extended version of model 1 in Table 4 in the manuscript-casuality as alternate measure of War Table S7b. Extended version of model 2 in Table 4 in the manuscript-defense spending as alternate measure of war Table S7c. Extended version of model 3 in Table 4 in the manuscript-major wars only Table S7d. Extended version of model 4 in Table 4 in the manuscript Table S8a. Exploring casual mechanisms: arms sectors Table S8b. Exploring casual mechanisms: civilian sectors Table S8c. Exploring casual mechanisms: hybrid sectors

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Gale Document Number: GALE|A439973071