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Ramsey In Dual-Population Lands: Internal Conflict And Utility-Maximizing Consumption

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  • Amnon Levy
  • Joao Ricardo Faria

Abstract

Ramsey's model is extended to three possible scenarios of conflicts in dual-population lands: partition, federation and civil war. The federally utility-maximizing consumption-growth rate in a strictly political federation might be lower than that under partition for the wealthier and more slowly multiplying group. This group may benefit from joining a federation that facilitates technological transfer and from obeying the federal no-arbitrage rule as long as its own technology is inferior to the hybrid. The utility-maximizing consumption growth rate for a group engaged in a civil war is larger than those under partition and a strictly political federation if its rival's warfare is mainly aimed at inflicting casualties and is likely to be smaller when its rival's warfare is mainly sabotage.

Suggested Citation

  • Amnon Levy & Joao Ricardo Faria, 2007. "Ramsey In Dual-Population Lands: Internal Conflict And Utility-Maximizing Consumption," Defence and Peace Economics, Taylor & Francis Journals, vol. 18(4), pages 339-352.
    • Handle: RePEc:taf:defpea:v:18:y:2007:i:4:p:339-352
    DOI: 10.1080/10242690600951698
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    References listed on IDEAS

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    1. Ibrahim Elbadawi & Nicholas Sambanis, 2002. "How Much War Will we see?," Journal of Conflict Resolution, Peace Science Society (International), vol. 46(3), pages 307-334, June.
    2. Collier, Paul & Hoeffler, Anke, 1998. "On Economic Causes of Civil War," Oxford Economic Papers, Oxford University Press, vol. 50(4), pages 563-573, October.
    3. Marta Reynal-Querol, 2002. "Ethnicity, Political Systems, and Civil Wars," Journal of Conflict Resolution, Peace Science Society (International), vol. 46(1), pages 29-54, February.
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    Cited by:

    1. Camacho, Carmen & Hassan, Waleed, 2023. "The dynamics of revolution: Discrimination, social unrest and the optimal timing of revolution," Economic Modelling, Elsevier, vol. 128(C).
    2. Carmen Camacho & Waleed Hassan, 2023. "People Get Ready: Optimal timing of Revolution," PSE Working Papers halshs-03372991, HAL.
    3. Aniruddha Bagchi & João Ricardo Faria & Timothy Mathews, 2019. "A model of a multilateral proxy war with spillovers," Public Choice, Springer, vol. 179(3), pages 229-248, June.
    4. Carmen Camacho & Waleed Hassan, 2023. "People Get Ready: Optimal timing of Revolution," Working Papers halshs-03372991, HAL.

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