We examine how cross-community cost or benefit spillovers, arising from the consumption of group-specific public goods, affect both inter-group conflicts over the appropriation of such goods and decentralized private provision for their production. Our model integrates production versus...

We examine how cross-community cost or benefit spillovers, arising from the consumption of group-specific public goods, affect both inter-group conflicts over the appropriation of such goods and decentralized private provision for their production. Our model integrates production versus...

Empirical evidence suggests that ethnic divisions in a society leads to negative outcomes in civil conflict and economic development, among others. It is often argued that the lack of shared social identity, that is, the dominance of subnational (particularly, ethnic) identities over national...