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Neoclassical Economics and War: Unifying the Liberal Peace Hypotheses
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NEOCLASSICAL ECONOMICS AND WAR:
UNIFYING THE LIBERAL PEACE HYPOTHESES
Patrick J. McDonald
Christopher H. Browne Center for International Politics
University of Pennsylvania
240 Stiteler Hall
208 S. 37
th
Street
Philadelphia, PA 19104
## email not listed ##
Abstract: Challenging some of the common explanations for the liberal peace, I argue that the principles of classical liberal theory can be merged with the insights of neo institutional economics to construct a single conceptual framework capable of generating numerous liberal hypotheses linking democracy, international commerce, capitalism, and variations in the forms of wealth to the outbreak of peace between states. Building on such simple principles as the law of demand, monopoly behavior, and diminishing returns, I move beyond democracy to integrate previously neglected domestic institutions also capable of shaping foreign policy, grand strategy, and the outbreak of war. As society establishes more institutional safeguards that protect individual liberties and limit a government’s authority, the state should be less likely to participate in war.
Prepared for delivery at the 2003 Annual Meeting of the American Political Science Association, August 28-August 31, 2003. Copyright by the American Political Science Association. This paper has benefited from the comments and suggestions of Michael Barnett, Tim Frye, Ed Mansfield, John Mueller, Jon Pevehouse, Kevin Sweeney, David Rowe, David Weimer; and participants at the Research in International Politics Seminar at Ohio State and the research colloquium at the Christopher H. Browne Center for International Politics at the University of Pennsylvania.
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NEOCLASSICAL ECONOMICS AND WAR:
UNIFYING THE LIBERAL PEACE HYPOTHESES
Patrick J. McDonald
Christopher H. Browne Center for International Politics
University of Pennsylvania
240 Stiteler Hall
208 S. 37
th
Street
Philadelphia, PA 19104
## email not listed ##
Abstract: Challenging some of the common explanations for the liberal peace, I argue
that the principles of classical liberal theory can be merged with the insights of neo
institutional economics to construct a single conceptual framework capable of generating
numerous liberal hypotheses linking democracy, international commerce, capitalism, and
variations in the forms of wealth to the outbreak of peace between states. Building on
such simple principles as the law of demand, monopoly behavior, and diminishing
returns, I move beyond democracy to integrate previously neglected domestic institutions
also capable of shaping foreign policy, grand strategy, and the outbreak of war. As
society establishes more institutional safeguards that protect individual liberties and limit
a government’s authority, the state should be less likely to participate in war.
Prepared for delivery at the 2003 Annual Meeting of the American Political Science
Association, August 28-August 31, 2003. Copyright by the American Political Science
Association. This paper has benefited from the comments and suggestions of Michael
Barnett, Tim Frye, Ed Mansfield, John Mueller, Jon Pevehouse, Kevin Sweeney, David
Rowe, David Weimer; and participants at the Research in International Politics Seminar
at Ohio State and the research colloquium at the Christopher H. Browne Center for
International Politics at the University of Pennsylvania.
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