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1、PublishedinEconomicsofGovernance,2(1),2001,pages25-33.ButterandGuns:ComplementaritybetweenEconomicandMilitaryCompetitionHerschelI.GrossmanBrownUniversityJuanMendozaStateUniversityofNewYorkatBuffaloAbstractThispaperanalysesageneral-equilibriummodelofthecomplementaritybetweeneconomicc
2、ompetitionfortheallegianceofsubjectsandmilitarycompetitionforthecontrolofland.Inourmodeleconomiccompetitionbetweenrivalrulersfortheallegianceofsubjectsresultsintheirsubjects,whethertheyareproducersorsoldiers,receivingincomesequaltothevalueofthemarginalproductofaproducer.Furthermore
3、,abstractingfromdestruction,militarycompetitionforthecontrolofland,totheextentthatitshiftssomesubjectsfromproducingtosoldiering,increasesthevalueofthemarginalproductofaproducer.Consequently,aslongasmilitarycompetitionisnottoodestructive,thesubjectsofrivalrulershavehigherincomeswith
4、bothmilitaryandeconomiccompetitionthanwitheconomiccompetitionalone.Economiccompetitionfortheallegianceofsubjectscausesrivalrulerstobearallofthecostofallocatingproductiontomilitarycompetitionandtobearmorethanthecostoftheforegoneproductionofsoldiers.Keywords:Military,Allegiance,Terri
5、tory,Rulers,SoldiersJELClassiÞcation:D74Rivalrulersareoftenengagedatthesametimebothineconomiccompetitionfortheal-legianceofsubjectsandinmilitarycompetitionforthecontrolofland.TheBritishstruggleagainsttheMalayancommunistsinthe1950’sepitomizesthecomplementaritybetweeneco-nomiccompeti
6、tionandmilitarycompetition.AccordingtothemilitaryhistorianBrigadierRichardClutterbuck,...GeneralSirHaroldBriggs...launchedaplanforvictorythatnotonlywonthewarinMalayabuthasbeencopiedeversinceinothercountriesfacingsimilaremergencies...BriggsputhisÞngeronwhatthewarwasreallyabout-acomp
7、eti-tioningovernment.HeaimednotonlytoresettlethesquattersbuttogivethemastandardoflocalgovernmentandadegreeofprosperitythattheywouldnotwishtoexchangeforthebarrenausterityoflifeundertheCommunists’parallelhierarchy;inotherwords,togivethemsomethingtolose.(Clutterbuck,1966,pages56-57)Th
8、erecentPeruvianexperiencep
