TB

This paper analyses the fiscal effects of armed conflict and terrorism on low- and middle-income countries. An analysis of 22 conflict episodes shows that armed conflict is associated with lower growth and higher inflation, and has adverse effects on tax revenues and investment. It also leads to...

The paper analyses a model where the fight for the appropriation of rents from natural resources between two groups leads to multiple equilibria. The possibility to be trapped into the low-income equilibrium, characterized by strong social conflict (civil war) and stagnation of income, increases...

Should goverment finance political parties? According to this paper, yes. Specially in peruvian case where social conflict is frequent because this is a more efficient way to put an issue in public agenda instead of building a political party. A formal model of cost benefit is presented to...

An important consensus today is that intolerance and social conflict have a substantial economic dimension. This article models a person’s “returns” to acts of intolerance in terms of social approval or disapproval that this person’s peer-group may offer. It is found that high levels of...

Standard growth theory is based on atomistic agents with no strategic interactions among them. In contrast, we model growth as resulting from a one-off, strategic game between workers and owners of capital (capitalists) on factor shares, in an otherwise standard AK growth model. The resulting...

This paper studies the evolution of political institutions in the face of conflict. We examine institutional reform in a class of pivotal mechanisms -- institutions that behave as if the resulting policy were determined by a "pivotal" decision maker drawn from the potential population of...

In this paper we obtain the value that experimental subjects attach to a prisoners’ dilemma game by applying a related procedure to BDM (1964). We also obtain the value of a closely related game which does not incorporate any social dilemma. By comparing both values, we are able to classify...

We explore the exercise of power in perpetuating status quo institutions. We give empirical examples of the economic importance of power and offer a definition of this elusive term. We then investigate the role of power in a modern capitalist economy, borrowing ideas from the classical...

This paper investigates how social composition affects social conflict and economic development when property rights are unenforceable. Groups follow Markovian strategies for consumption and investment and may also spend effort in an resource appropriation contest. It is shown that conflict...