A Methodology for the Calculation of the Global Economic Costs of Con‡ict by Olaf J. de Groot

There is a substantial body of research on the calculation of the costs of
con‡ict, but so far no satisfactory methodology has been proposed that is able
to combine all potential channels in one single analysis. This paper uses the
existing literature and its problems to propose a methodology for doing so.
The speci…c problems addressed in this study include the measurement of
welfare, the imputation of missing data, the validity of the econometric tech-
niques used in the estimation of con‡ict costs, the di¤erentiation of existing
con‡ict databases and the possibility of both direct and non-direct e¤ects.
These challenges are described in detail in this paper and a comprehensive
methodological roadmap is proposed to be able to estimate the Global Eco-
nomic Costs of Con‡ict. This contribution is an important continuation of our
research agenda with regards to the calculation of the Global Economic Costs
of Con‡ict.
Keywords: Con‡ict, development, costs of con‡ict, civil war
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