Economic sanctions as deterrents and constraints

This article analyses economic sanctions starting from the perspective of a target that has to allocate its income between spending on resources pursue contentious policy and consumption goods. By studying target’s problem, it demonstrates how could backfire causing shift policy, thereby increasing severity policy. Whether this will come pass depends elasticities substitution, which are determined by utility function. Therefore, even seem like they do no harm, such as embargoes luxury goods consumed only dictator, aggravate level given right Considering problem also illustrates (depending form function) reduce pursuing moderating it. If benefits constraint outweigh costs sender, be in sender’s best interest impose sanctions. In these cases articulating demand waiting for consider would simply provide with additional time continue so sender constraining without warning. Constraining sanctions, therefore, an explanation imposed threat stage. can occur complete perfect information may persist indefinitely, explaining existence long-term costly well full information.