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On the Theory of Ethnic Conflict

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Author Info
Francesco Caselli
Wilbur John Coleman II

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Abstract

We present a theory of ethnic conflict in which coalitions formed along ethnic lines competefor the economy's resources. The role of ethnicity is to enforce coalition membership: inethnically homogeneous societies members of the losing coalition can defect to the winners atlow cost, and this rules out conflict as an equilibrium outcome. We derive a number ofimplications of the model relating social, political, and economic indicators such as theincidence of conflict, the distance among ethnic groups, group sizes, income inequality, andexpropriable resources.

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Paper provided by Centre for Economic Performance, LSE in its series CEP Discussion Papers with number dp0732.

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Date of creation: Jul 2006
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Handle: RePEc:cep:cepdps:dp0732

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Keywords: ethnic distance exploitation

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Find related papers by JEL classification:
P48 - Economic Systems - - Other Economic Systems - - - Other Economic Systems: Political Economy; Legal Institutions; Property Rights
Q34 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Natural Resources and Domestic and International Conflicts
Z13 - Other Special Topics - - Cultural Economics - - - Social Norms and Social Capital; Social Networks Economic Anthropology

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Grossman, Herschel I, 1999. "Kleptocracy and Revolutions," Oxford Economic Papers, Oxford University Press, vol. 51(2), pages 267-83, April.
  2. Jose G. Montalvo & Marta Reynal-Querol, 2005. "Ethnic Polarization, Potential Conflict, and Civil Wars," American Economic Review, American Economic Association, vol. 95(3), pages 796-816, June. [Downloadable!] (restricted)
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    Other versions:
  7. Enrico Spolaore & Romain Wacziarg, 2006. "The Diffusion of Development," NBER Working Papers 12153, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  8. Alberto Alesina & Eliana La Ferrara, 2000. "Participation In Heterogeneous Communities," The Quarterly Journal of Economics, MIT Press, vol. 115(3), pages 847-904, August. [Downloadable!] (restricted)
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  9. Alberto Alesina & Arnaud Devleeschauwer & William Easterly & Sergio Kurlat & Romain Wacziarg, 2002. "Fractionalization," Harvard Institute of Economic Research Working Papers 1959, Harvard - Institute of Economic Research. [Downloadable!]
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  10. Esteban, Joan & Ray, Debraj, 1994. "On the Measurement of Polarization," Econometrica, Econometric Society, vol. 62(4), pages 819-51, July. [Downloadable!] (restricted)
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  11. Easterly, William & Levine, Ross, 1997. "Africa's Growth Tragedy: Policies and Ethnic Divisions," The Quarterly Journal of Economics, MIT Press, vol. 112(4), pages 1203-50, November.
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  12. Esteban, Joan & Ray, Debraj, 1999. "Conflict and Distribution," Journal of Economic Theory, Elsevier, vol. 87(2), pages 379-415, August. [Downloadable!] (restricted)
  13. Eli Berman, 2003. "Hamas, Taliban and the Jewish Underground: An Economist's View of Radical Religious Militias," NBER Working Papers 10004, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  15. McDermott, John, 1997. " Exploitation and Growth," Journal of Economic Growth, Springer, vol. 2(3), pages 251-78, September. [Downloadable!] (restricted)
  16. Edward L. Glaeser, 2005. "The Political Economy of Hatred," The Quarterly Journal of Economics, MIT Press, vol. 120(1), pages 45-86, January.
    Other versions:
  17. Alesina, Alberto & Baqir, Reza & Easterly, William, 1999. "Public goods and ethnic divisions," Policy Research Working Paper Series 2108, The World Bank. [Downloadable!]
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  18. José Garcia Montalvo & Marta Reynal-Querol, 2004. "Ethnic Polarization, Potential Conflict, and Civil Wars," Economics Working Papers 770, Department of Economics and Business, Universitat Pompeu Fabra, revised Mar 2005. [Downloadable!]
  19. Azam, J.P., 2001. "The Redistributive State and Conflicts in Africa," Working Papers Series 2001-3, Centre for the Study of African Economies, University of Oxford.
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  21. Collier, Paul & Hoeffler, Anke, 2000. "Greed and grievance in civil war," Policy Research Working Paper Series 2355, The World Bank. [Downloadable!]
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  22. Grossman, Herschel I, 1991. "A General Equilibrium Model of Insurrections," American Economic Review, American Economic Association, vol. 81(4), pages 912-21, September. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Jose G. Montalvo & Marta Reynal-Querol, 2005. "Ethnic Polarization, Potential Conflict, and Civil Wars," American Economic Review, American Economic Association, vol. 95(3), pages 796-816, June. [Downloadable!] (restricted)
  2. Dominic Rohner, 2008. "Reputation, Group Structure and Social Tensions," HiCN Working Papers 40, Households in Conflict Network. [Downloadable!]
  3. Justin Lifu Lin, 2004. "Development Strategies for Inclusive Growth in Developing Asia," Development Economics Working Papers 444, East Asian Bureau of Economic Research. [Downloadable!]
  4. Haimanko, Ori & Le Breton, Michel & Weber, Shlomo, 2005. "The Stability Threshold and Two Facts of Polarization," CEPR Discussion Papers 5098, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  5. Gerard Padro i Miquel, 2006. "The Control of Politicians in Divided Societies: The Politics of Fear," NBER Working Papers 12573, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  6. Benjamin Bridgman, . "Multiethnic Democracy," Departmental Working Papers 2004-02, Department of Economics, Louisiana State University. [Downloadable!]
  7. Enrico Spolaore & Romain Wacziarg, 2006. "The Diffusion of Development," NBER Working Papers 12153, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  8. Benjamin Bridgman, 2008. "What Does the Atlas Narodov Mira Measure?," Economics Bulletin, Economics Bulletin, vol. 10(6), pages 1-8. [Downloadable!]
  9. Smeets, Valérie & Ierulli, Kathryn & Gibbs, Michael, 2006. "Mergers of Equals & Unequals," Working Papers 06-8, University of Aarhus, Aarhus School of Business, Department of Economics. [Downloadable!]
  10. Marie-Anne Valfort, 2007. "Containing ethnic conflicts through ethical voting? Evidence from Ethiopia," HiCN Working Papers 35, Households in Conflict Network. [Downloadable!]
  11. Edward L. Glaeser, 2002. "The Political Economy of Hatred," NBER Working Papers 9171, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  12. Walter Bossert & Conchita D’Ambrosio & Eliana Laferrara, . "A Generalized Index of Fractionalization," Working Papers 313, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University. [Downloadable!]
  13. Gradstein, Mark & Schiff, Maurice, 2004. "The Political Economy of Social Exclusion with Implications for Immigration Policy," IZA Discussion Papers 1087, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  14. Joan Esteban & Debraj Ray, 2007. "A Model of Ethnic Conflict," UFAE and IAE Working Papers 701.07, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC). [Downloadable!]
  15. HAIMANKO, Ori & LE BRETON, Michel & WEBER, Shlomo, 2005. "The Stability Threshold and Two Facets of Polarization," IDEI Working Papers 366, Institut d'Économie Industrielle (IDEI), Toulouse. [Downloadable!]
  16. Benjamin Bridgman, . "Why Are Ethnically Divided Countries Poor?," Departmental Working Papers 2003-11, Department of Economics, Louisiana State University. [Downloadable!]
    Other versions:
  17. Rohner, D., 2006. "Information, Reputation and Ethnic Conflict," Cambridge Working Papers in Economics 0658, Faculty of Economics, University of Cambridge. [Downloadable!]
  18. Patricia Justino, 2007. "Carrot or stick? Redistributive transfers versus policing in contexts of civil unrest," HiCN Working Papers 33, Households in Conflict Network. [Downloadable!]
    Other versions:
  19. Wick, Katharina, 2007. "Conflict and Production: An Application to Natural Resources," Proceedings of the German Development Economics Conference, Göttingen 2007 34, Verein für Socialpolitik, Research Committee Development Economics. [Downloadable!]
  20. Alberto Alesina & Arnaud Devleeschauwer & William Easterly & Sergio Kurlat & Romain Wacziarg, 2003. "Fractionalization," NBER Working Papers 9411, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
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