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On the Theory of Ethnic ConflictFrancesco CaselliLondon School of Economics & Political Science (LSE) - Department of Economics; Centre for Economic Policy Research (CEPR); National Bureau of Economic Research (NBER) Wilbur John Coleman IIDuke University, Fuqua School of Business-Economics Group April 2006 CEPR Discussion Paper No. 5622 Abstract: We present a theory of ethnic conflict in which coalitions formed along ethnic lines compete for the economy's resources. The role of ethnicity is to enforce coalition membership: in ethnically homogeneous societies members of the losing 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 ethnic groups, group sizes, income inequality, and expropriable resources.
Number of Pages in PDF File: 36 Keywords: Ethnic distance, exploitation JEL Classification: P48, Q34, Z13 working papers seriesDate posted: July 5, 2006Suggested CitationContact Information
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