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Does inequality make us rebel ? A renewed theoretical model applied to South Mexico

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  • Jean-François, MAYSTADT

    (UNIVERSITE CATHOLIQUE DE LOUVAIN, Department of Economics)

Abstract

Since Collier and Hoeffler (1998, 2004), it has been supported that inequality, measured at national level, does not affect the risk of conflict. Based on a renewed theoretical framework, the purpose of the paper is to explore the role of inequality in localized conflicts. We argue that previous findings might be biased by the myopic nature of cross-country analysis. Consistently with the model, Probit estimations indicate that income inequality measured at municipal level was significant in motivating people to support the rebellion in South Mexico. At this geographical level, we also find an increase in income per capita could exacerbate the risk of conflict in a situation where the rebel leader would have greater incentives to loot the local production compared to the opportunity cost associated with fighting for the worker.

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Paper provided by Université catholique de Louvain, Département des Sciences Economiques in its series Discussion Papers (ECON - Département des Sciences Economiques) with number 2007041.

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Length: 36
Date of creation: 01 Dec 2007
Date of revision:
Handle: RePEc:ctl:louvec:2007041

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Keywords: Rebellion; Inequality; Income; Mexico;

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  1. Collier, Paul & Hoeffler, Anke, 1998. "On Economic Causes of Civil War," Oxford Economic Papers, Oxford University Press, vol. 50(4), pages 563-73, October.
  2. repec:fth:oxesaf:98-8 is not listed on IDEAS
  3. Esteban, J. & Ray, D., 1993. "On the Measurement of Polarization," UFAE and IAE Working Papers 221.93, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
  4. Frances Stewart, 2000. "Crisis Prevention: Tackling Horizontal Inequalities," Oxford Development Studies, Taylor and Francis Journals, vol. 28(3), pages 245-262.
  5. Collier, Paul & Hoeffler, Anke, 2000. "Greed and grievance in civil war," Policy Research Working Paper Series 2355, The World Bank.
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  7. Reynal-Querol, Marta, 2005. "Does democracy preempt civil wars?," European Journal of Political Economy, Elsevier, vol. 21(2), pages 445-465, June.
  8. Grossman, Herschel I, 1999. "Kleptocracy and Revolutions," Oxford Economic Papers, Oxford University Press, vol. 51(2), pages 267-83, April.
  9. Javier Sánchez-Reaza, 2002. "The Impact of Trade Liberalization on Regional Disparities in Mexico," Growth and Change, Gatton College of Business and Economics, University of Kentucky, vol. 33(1), pages 72-90.
  10. Rubin, Barnett R., 2000. "The Political Economy of War and Peace in Afghanistan," World Development, Elsevier, vol. 28(10), pages 1789-1803, October.
  11. Roemer, John E, 1985. "Rationalizing Revolutionary Ideology," Econometrica, Econometric Society, vol. 53(1), pages 85-108, January.
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  13. Azam, Jean-Paul & Mesnard, Alice, 2001. "Civil War and the Social Contract," IDEI Working Papers 124, Institut d'Économie Industrielle (IDEI), Toulouse.
  14. Desmet, Klaus & Ortuño-Ortín, Ignacio & Weber, Shlomo, 2005. "Peripheral Diversity and Redistribution," CEPR Discussion Papers 5112, C.E.P.R. Discussion Papers.
  15. Azam, Jean-Paul, 2003. "Suicide-Bombing as Inter-Generational Investment," IDEI Working Papers 234, Institut d'Économie Industrielle (IDEI), Toulouse.
  16. Bourguignon, Francois & Morrisson, Christian, 1998. "Inequality and development: the role of dualism," Journal of Development Economics, Elsevier, vol. 57(2), pages 233-257.
  17. Rivers, Douglas & Vuong, Quang H., 1988. "Limited information estimators and exogeneity tests for simultaneous probit models," Journal of Econometrics, Elsevier, vol. 39(3), pages 347-366, November.
  18. Azam, Jean-Paul, 1995. " How to Pay for the Peace? A Theoretical Framework with References to African Countries," Public Choice, Springer, vol. 83(1-2), pages 173-84, April.
  19. Grossman, Herschel I, 1991. "A General Equilibrium Model of Insurrections," American Economic Review, American Economic Association, vol. 81(4), pages 912-21, September.
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