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Armed conflicts pose significant challenges for the international community. Conflicts cause deaths, destroy capital and the environment, deter investment, and hinder economic activity. However, little is known about the economic costs of armed conflict and even less about the impact of conflict risk. The reason policymakers are in the dark about these relevant estimates involves two key issues: first, in order to study the impact on economic activity, we require timely and reliable measures of economic activity; second, in order to study the impact of conflict risk, which is unobserved. The aim of this project is to shed light on these missing parts. In order to do so, we will rely on a database of more than 5 million newspaper articles and granular conflict and geographic data in order to predict conflict risk and economic activity and study the relation between the two. See more: https://www.keynesfund.econ.cam.ac.uk...