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

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Author Info
Amnon Levy
João Ricardo Faria

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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.

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File URL: http://www.informaworld.com/openurl?genre=article&doi=10.1080/10242690600951698&magic=repec&7C&7C8674ECAB8BB840C6AD35DC6213A474B5
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Publisher Info
Article provided by Taylor and Francis Journals in its journal Defence and Peace Economics.

Volume (Year): 18 (2007)
Issue (Month): 4 ()
Pages: 339-352
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Handle: RePEc:taf:defpea:v:18:y:2007:i:4:p:339-352

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Related research
Keywords: Internal conflict; Partition; Federation; Civil war; Utility-maximizing consumption;

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This page was last updated on 2009-12-5.


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