Pricing war within a real option framework

The aim of this paper is to provide insights on war spending using simple tools of financial calculus rather than developing a general theory. Combining Grossman and Han's theory of war finance with the empirical literature that displays a straightforward relationship between the real value of money and wartime military events, we advocate the use of the real option approach of war spending. Some calculations and an empirical example illustrate this approach.

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Year of publication:	2003
Authors:	Medina, Vincent ; Nidier, Cyr-Denis
Published in:	Defence and Peace Economics. - Taylor & Francis Journals, ISSN 1024-2694. - Vol. 14.2003, 6, p. 425-435
Publisher:	Taylor & Francis Journals
Subject:	War \| Options \| Financial Calculus

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Extent:	text/html
Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005495967