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Violent Conflict and Inequality

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  • Cagatay Bircan
  • Tilman Brück
  • Marc Vothknecht

Abstract

This paper analyzes the distributive impacts of violent conflicts, which is in contrast to previous literature that has focused on the other direction. We use cross-country panel data for the time period 1960-2005 to estimate war-related changes in income inequality. Our results indicate rising levels of inequality during war and especially in the early period of post-war reconstruction. However, we find that this rise in income inequality is not permanent. While inequality peaks around five years after the end of a conflict, it declines again to pre-war levels within the end of the first post-war period. Lagged effects of conflict and only subsequent adjustments of redistributive policies in the period of post-war reconstruction seem to be valid explanations for these patterns of inequality. A series of alternative specifications confirms the main findings of the analysis.

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File URL: http://www.diw.de/documents/publikationen/73/diw_01.c.357459.de/dp1013.pdf
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Bibliographic Info

Paper provided by DIW Berlin, German Institute for Economic Research in its series Discussion Papers of DIW Berlin with number 1013.

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Length: 34 p.
Date of creation: 2010
Date of revision:
Handle: RePEc:diw:diwwpp:dp1013

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Keywords: Conflict; Inequality; Reconstruction; Income Distribution;

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References

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Citations

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Cited by:
  1. Oloufade, Djoulassi K., 2012. "Trade Openness, Conflict Risk and Income Inequality," MPRA Paper 40702, University Library of Munich, Germany, revised Feb 2013.
  2. Brück, Tilman & Llussá, Fernanda & Tavares, José, 2010. "Perceptions, Expectations, and Entrepreneurship: The Role of Extreme Events," CEPR Discussion Papers 8098, C.E.P.R. Discussion Papers.
  3. Juan Carlos Muñoz-Mora, 2010. "Los Caminos del Café: Aproximación a la Relación entre el Conflicto Armado Rural y la Producción Cafetera Colombiana," ENSAYOS SOBRE POLÍTICA ECONÓMICA, BANCO DE LA REPÚBLICA - ESPE.
  4. José María, Larrú, 2012. "La relación entre la ayuda al desarrollo y la desigualdad. Evidencia y justificación teórica
    [Aid and inequality relationship. Evidence and theoretical justification]
    ," MPRA Paper 38857, University Library of Munich, Germany.

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