Rohner, Dominic; Thoenig, Mathias; Zilibotti, Fabrizio - 2011
We construct a dynamic theory of civil conflict hinging on inter-ethnic trust and trade. The model economy is … beliefs on the average propensity to trade of the other group. Since confict disrupts trade, the onset of a conflict signals … time, transmitting them to the next generation. The theory bears a set of testable predictions. First, war is a stochastic …