Showing 1 - 10 of 41
We examine the effects of famine relief efforts (food aid) in regions undergoing civil war. In our model, warlords seize a fraction of all aid entering the region. How much they loot affects their choice of army size; therefore the manner in which aid is delivered influences warfare. We identify...
Persistent link: https://www.econbiz.de/10005015275
This paper presents a model of conflict which allows belligerents to recruit both adults and children as soldiers. Warlords fight over the country's productive (i.e. non-military) output, and are aware of the tradeoff involved in recruitment: anyone who becomes a soldier cannot produce output....
Persistent link: https://www.econbiz.de/10005015286
We build a political economy model of state policy choice highlighting the challenges to breaking barriers to the adoption of inclusive policies in Africa. We highlight necessary and sufficient conditions for a political leader to gain from implementing exclusive policies: (i) Implementing...
Persistent link: https://www.econbiz.de/10009421725
This paper presents a theoretical model of conflict between two players, with intervention by a peacekeeping force. Peacekeepers are treated as a military contingent, capable of taking sides, acting as a third (independent) side in the war, or remaining inactive, depending on circumstances. This...
Persistent link: https://www.econbiz.de/10010570022
We examine the effects of famine relief efforts (food aid) in regions undergoing civil war. In our model, warlords seize a fraction of all aid and use it to feed soldiers. They hire their troops within a population of farmers heterogeneous in skills. We determine the equilibrium distribution of...
Persistent link: https://www.econbiz.de/10008567828
Most natural commons are subject to discontinuities and threshold effects, so their gradual depletion may result in a sudden irreversible loss of the associated ecological services. Yet, it is often impossible to locate these thresholds with certainty. We analyze this context using a variant of...
Persistent link: https://www.econbiz.de/10008835200
We study the issue of integrating real and financial decisions in a monopoly firm with risk-averse decision-makers. To that end, we combine the decisions of the firm and of the shareholders in a very simple but robust model, with uncertainty in the real market and CARA preferences. We show the...
Persistent link: https://www.econbiz.de/10011263110
Risk classification refers to the use of observable characteristics by insurers to group individuals with similar expected claims, to compute the corresponding premiums, and thereby to reduce asymmetric information. Permitting risk classification may reduce informational asymmetry-induced...
Persistent link: https://www.econbiz.de/10010786402
Risk classification refers to the use of observable characteristics by insurers to group individuals with similar expected claims, compute the corresponding premiums, and thereby reduce asymmetric information. An efficient risk classification system generates premiums that fully reflect the...
Persistent link: https://www.econbiz.de/10009369377
We address the issue of risk aversion in a competitive equilibrium when some buyers engage in learning and information is conveyed through the price system. Specifically, since the learning process yields uncertainty, we study the effect of risk aversion on the equilibrium outcomes of the model,...
Persistent link: https://www.econbiz.de/10011170399