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ARTICLE | Market structure and economic sanctions: the 2010 rare earth elements episode as a pathway case of market adjustment

Author: Eugene Gholz

Studies identify cost as a key factor determining the effectiveness of economic sanctions. We argue that failing to account for market dynamics in the sector in which sanctions are imposed undermines the validity of estimates of the economic costs imposed on target countries, and we propose that market structure powerfully conditions sanctions effectiveness. To examine the effect of market structure, we trace the causal path through...