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Social Composition, Social Conflict, and Economic Development Author info | Abstract | Publisher info | Download info | Related research | Statistics Holger Strulik
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This paper investigates how people subdivided in social groups behave in an economy without property rights. Facing a linear production technology groups follow Markovian strategies for consumption and investment. Additionally, they may spend effort in an appropriation contest. For a symmetric society I show that conflict prevents investment and growth. In a society at peace economic growth may occur. Growth, however, is decreasing in the degree of social fractionalization and smaller than it could be under secure property rights. In an economy populated by social groups of unequal size an asymmetric equilibrium exists. A large majority may behave peacefully although continuously challenged by a predatory minority. In that case the economy either stagnates or grows at a low rate. Growth is decreasing in the size of the predatory minority and its conflict intensity.
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Paper provided by DEGIT, Dynamics, Economic Growth, and International Trade in its series DEGIT Conference Papers with number
c009_018.
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Length: 30 pages
Date of creation: Jun 2004Date of revision:
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Keywords: Africa’s Growth Tragedy Property Rights Social Conflict Fractionalization Other versions of this item:
Paper Strulik, Holger, 2006.
"Social Composition, Social Conflict, and Economic Development ,"
Diskussionspapiere der Wirtschaftswissenschaftlichen Fakultät der Universität Hannover
dp-350, Universität Hannover, Wirtschaftswissenschaftliche Fakultät.
[Downloadable!] Holger Strulik, 2005.
"Social Composition, Social Conflict, and Economic Development ,"
Discussion Papers
05-16, University of Copenhagen. Department of Economics (formerly Institute of Economics).
[Downloadable!] Find related papers by JEL classification: C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances O11 - Economic Development, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
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