Growth Dynamics: the Myth of Economic Recovery: Comment

Authors: Hannes Mueller

American Economic Review, Vol. 102, No 7, 3774--3777, January, 2012

This comment highlights different ways of coding crisis episodes in Cerra and Saxena (2008) (CS). The comment shows that the coding used for civil war implies a misrepresentation of its impact. A correct coding of civil war reveals that the average civil war leads to a loss in output of 18 percent. This makes civil wars more devastating than all other crisis studied by CS.