Modeling the Effectiveness of Sanctions on Strategic Resources: Evidence from Oil and Semiconductors with Hierarchical Bayesian Learning

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Brief Overview

This study finds that sanctions on resources like oil and semiconductors are most effective when markets favor buyers. A hierarchical Bayesian model shows that excess demand weakens and excess supply strengthens sanction success.

Authors

• Yewon Kwon, Texas A&M University

• Daheon Rhee, Yonsei University

• Jiwoon Kim, Yonsei University

• Minwoo Choi, Yonsei University