Alesina, AlbertoSpolaore, Enrico2010-11-092006Alesina, Alberto, and Enrico Spolaore. 2006. Conflict, defense spending, and the number of nations. European Economic Review 50(1): 91-120.0014-2921http://nrs.harvard.edu/urn-3:HUL.InstRepos:4553016This paper provides a formal model of endogenous border formation and choice of defense spending in a world with international conflict. We examine both the case of democratic governments and of dictatorships. The model is consistent with three observations. First, breakup of countries should follow a reduction in the likelihood of international conflicts. Second, the number of regional conflicts between smaller countries may increase as a result of the breakup of larger countries. Third, the size of the peace dividend (the reduction in defense spending in a more peaceful world) is limited by the process of country breakup.en-USconflictborderssize of nationsLeviathansJournal Article2010-11-0910.1016/j.euroecorev.2004.06.003