This exploratory paper outlines the special macroeconomic features of countries populated by two groups of people engaged in internal conflict yet forming a central government for generating benefits that cannot be privately attained. Each group exerts an influence on the central government in...

Ramsey's model is extended to three possible scenarios of conflicts in dual-population lands: partition, federation and civil war. The federally utility-maximizing consumption-growth rate in a strictly political federation might be lower than that under partition for the wealthier and more...