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Trade - 10/11/2003 1:23:53 AM   
Wellington12347

 

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Joined: 10/1/2003
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Take a country, say Prussia. Subtract the minimal amount of her national income attributable to trade (remember, this is not the amount Prussia dervies from trade but rather the amount of tax-on-trade she allocates to her military). Make this "land trade" amount subject to external factors such as decreasing the fraction she receives from France when at war w/ France. Now increase her national income by a small fraction to reflect increased military production during time of war. Have the computer model all this. Consider that these are all rough estimates based on poor data from the early 19th century. I would imagine that the NET effects of wars and trade decisions on the actual resources available for military purposes, would be negligible. These negligible effects are far less than the overall error from having to estimate all these things.

But I'm sure everyone would be happier because the effects would be realistically modeled.

Jason

(in reply to Roads)
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