Abstract
This paper intends to establish conceptual foundations of analyzing the economic dimensions of warfare. The main objective of this research paper is to evaluate the final impact of a war between India and Pakistan under the application of the Post-War Final Economic Damage Simulator (PFEDS). The PFEDS attempts to estimate the heterogeneous macroeconomic effects of a potential military conflict. The simulator suggests nine different indicators: (i) the territorial dispute tension, ∆T; (ii) the territorial dispute strategy, Sn; (iii) warfare dimension, Ak; (iv) warfare losses, -π, (v) warfare economic leaking, -Ψ, (vi) warfare economic desgrowth, -δw; (vii) the post-war economic damage, -Π; (viii) the post-war reconstruction plan, Rt; (ix) and the Mega-Disk Networks Analysis. The simulator investigates the territorial dispute between India and Pakistan (1946-2019) about Kashmir.
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