This paper sets flight capital in the context of portfolio choice, focusing upon the proportion of private wealth that is held abroad. There are large regional differences in this proportion, ranging from 5 percent in South Asia to 40 percent in Africa. We explain cross-country differences in...

A simple two-stage game-theoretic model of conflict is analysed, where the government can send raiders for terrorising the population to flee before the fighting proper begins. The resulting displacement of population reduces the efficiency of the guerrilla in the fight against the government....