UNIVERSITY OF LONDON
BSc ECONOMICS MID TERM TEST 2014/15
For Internal Students of
DO NOT TURN OVER UNTIL TOLD TO BEGIN
EC3320 : ECONOMICS OF WARFARE
Time Allowed: ONE hour
Answer ALL questions
Please answer each question on a separate page
And Economic Model of Counter Terrorism
The next few slides present the simple supply and demand model of Bruno Frey from his
paper Terrorism from the Rational Choice Point of View.
Frey uses the most basic supply
Lets open to today with a central economic concept opportunity cost.
The opportunity cost of a particular course of action is the value of the next best alternative course
of action that could have been chosen.
Revision Questions for Midterm 1
1. Consider the table from NEJM paper "The Weapons that Kill Civilians"
According to the data in the table, what is the maximum number of children
who could have been killed in the conflict?
Welcome! This will be the best year of your lives.
I expect that a big part of your fun year will be the Economics of Warfare course.
The next slide shows you one person who took the course and one person who didn
War in Kosovo 1998 - 1999
How many People were Killed? In Scientists we Trust?
Who was Killed? A Technical Issue?
Kosovo Memory Book Database
Presentation and Expert Evaluation
February 6th 2015, 11.00 a.m.
Worksheet for Week 3
Read the Bahney et al. paper.
1. What are compensating differentials?
Answer This is the idea that people taking on undesirable work should be
compensated, all else equal. The Bahney et al. paper focuse
Worksheet with Feedback for Week 5
During the Second World War the allied forces flew many missions over Germany.
For aeroplanes that returned from combat the location of bullet holes on the plane
were recorded on a figure
Before diving into the main substance of todays lecture we need to think about the
technique known as logistic regression.
The standard regression framework is intended for cases where the left-hand-side variable
Worksheet for Week 4 with Feedback
1. Consider the simple supply and demand model by Bruno Frey presented in slides
15 of lecture 2.
a. Draw a picture showing that increasing the money spent preventing terrorism can
Worksheet for Week 8
1. Look at Table 2 of the Berman et al. 1 paper. You can find this table on slide 18
of lecture 4.
a. The unemployment coefficient estimated for the Philippines is -0.131. Interpret
this coefficient. In