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We study the role of inter-group differences in the emergence of conflict. In our setting, two groups compete for the right to allocate society's resources, and we allow for costly inter-group mobility. The winning group offers an allocation, that the opposition can either accept, or reject and...
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Poor communities sometimes resist private investment and destroy economic surplus even if the government has the willingness and ability to redistribute. We interpret such acts of resistance as demands for redistribution: destruction contains credible information about how affected groups value...
Persistent link: https://www.econbiz.de/10010878531
Poor communities sometimes resist private investment and destroy economic surplus even if the government has the willingness and ability to redistribute. We interpret such acts of resistance as demands for redistribution: Destruction contains credible information about how the affected group...
Persistent link: https://www.econbiz.de/10010786546
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If a government has ability and willingness to redistribute the surplus created by an external investor, why do we still observe resistance to such investment, sometimes in the form of destruction of productive assets? And how does such destructive action affect a government's...
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