An Economic Model of the Wartime Economy: An Application to a Possible Sino-Japanese Conflict

This paper introduces a new economic model of a wartime economy, the war economic capability model—WEC-Model. The WEC-Model assesses the economic impact of an armed conflict in three different stages: (1) initial armed conflict and diplomatic negotiations; (2) military armed conflict; and (3) winners and losers in the post-armed conflict stage. The analysis makes use of new indicators such as economic desgrowth (−δ), armed conflict intensity (α ...