“…My results are in line with Berman, Shapiro, and Felter (2011), Fetzer (2014), Crost, Felter et al (2016), Wright (2016), Beath, Christia, and Enikolopov (2017), and Fetzer, Souza, Vanden Eynde, and Wright (2021), who show how conflict and tactics change with financing, as highlighted by Bueno de Mesquita (2013). Recent work by Battiston, Daniele, Le Moglie, and Pinotti (2022) find that drug cartels respond to the war on drugs in Mexico by diversifying their financing away from drugs toward large‐scale oil thefts and this changes the competitive landscape between groups. Relatedly, Bueno de Mesquita (2005a,b, 2007) argue the importance of financial counterterrorism compared to alternative strategies, and my empirical evidence shows the existence of the financial frictions reinforcing this hypothesis 5…”