Should You Arm Your Future Victims?
AbstractA model is presented where the ruler may arm the producers, in order to convince them that he will not expropriate them ex post. This sets an upper limit on the tax rate, not higher than their probability of losing their income, should a war occur. The relevance of this analysis is illustrated by discussing various case studies, involving post-conflict situations. Some variants of the model are presented for highlighting some implementation problems, related to asymmetric information or to positive initial endowments of weapons or non-produced wealth, which may lead to war in equilibrium. Copyright 2006 Blackwell Publishing Ltd.
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Bibliographic InfoArticle provided by Wiley Blackwell in its journal Economics & Politics.
Volume (Year): 18 (2006)
Issue (Month): 3 (November)
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Web page: http://www.blackwellpublishing.com/journal.asp?ref=0954-1985
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- Azam, Jean-Paul, 2008. "Macroeconomic Agenda for Fiscal Policy and Aid Effectiveness in Post-Conflict Countries," IDEI Working Papers 539, Institut d'Économie Industrielle (IDEI), Toulouse.
- Azam, Jean-Paul, 2005. "Can the Peace Be Imported?," IDEI Working Papers 356, Institut d'Économie Industrielle (IDEI), Toulouse.
- Edgardo Barandiarán, 2003. "Protecting Property from Stationary Bandits," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 40(121), pages 626-632.
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