@TechReport{iza:izadps:dp18895,
            	author={Amann, Marvin and Gorodnichenko, Yuriy and Talavera, Oleksandr},
            	title={The Allocative Cost of War:  A View to a Kill…ing of Productivity},
            	year={2026},
	month={Aug},
            	institution={Institute of Labor Economics (IZA)},
            	address={Bonn},
            	type={IZA Discussion Paper},
            	number={18895},
            	url={https://www.iza.org/publications/dp18895},
	abstract={Why is war so economically costly? Our answer is that modern war lowers output not only by destroying productive factors, but also by making the surviving economy work less efficiently.  Using uniquely comprehensive firm-level data collected during  Russia's full-scale invasion of Ukraine in 2022, we document a dramatic collapse in allocative productivity in Ukraine. To sharpen identification and explore key mechanisms (including the role of war intensity, internal displacement, reallocation, and macroeconomic instability), we exploit spatial heterogeneity across Ukrainian districts and comparisons with Russian aggression in 2014 and the 2008 Global Financial Crisis.  Our key policy implication is that restoring allocative efficiency--and preparing  institutional arrangements that facilitate rapid reallocation in times of stress--is critical for sustaining economic capacity, defense, and national security.},
	keywords={geoeconomics;defense;misallocation;productivity;war;Ukraine},
            }