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We present a theory of ethnic conflict in which coalitions formed along ethnic lines compete for the economy … coalition can defect to the winners at low cost, and this rules out conflict as an equilibrium outcome. We derive a number of … implications of the model relating social, political, and economic indicators such as the incidence of conflict, the distance among …
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This volume of Contributions to Conflict Management, Peace Economics and Development includes some of the selected …
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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 conflict disrupts trade, the onset of a conflict signals … after each conflict episode. Third, "accidental" conflicts that do not reflect economic fundamentals can lead to a permanent …
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High-quality institutions-reflected in such factors as rule of law, bureaucratic quality, freedom from government expropriation, and freedom from government repudiation of contracts-mitigate the adverse economic effects of ethnic fractionalization identified by Easterly and Levine (1997) and...
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November 2000 Ethnic diversity has a more adverse effect on economic policy and growth when a government's institutions are poor. But poor institutions have an even more adverse effect on growth and policy when ethnic diversity is high. High-quality institutions - reflected in such factors as...
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