We construct a model in which a number of equally powerful ethnic groups compete for power by engaging in civil war. In non-redistributive equilibrium, ethnically homogeneous and ethnically diverse countries face a lower probability of civil war than countries with a moderate degree of ethnic diversity. The likelihood of conflict is maximized when there are two ethnic groups. When rent-extraction possibilities are not too big and society sufficiently ethnically homogeneous, there also exists a pacific equilibrium path sustained by redistribution from the ruling group to the out-of-power groups.
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Paper provided by Research Institute of Industrial Economics in its series Working Paper Series with number
589.
Length: 33 pages Date of creation: 14 Oct 2002 Date of revision: Handle: RePEc:hhs:iuiwop:0589
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Find related papers by JEL classification: H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities and Races; Non-labor Discrimination K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law N40 - Economic History - - Government, War, Law, and Regulation - - - General, International, or Comparative N47 - Economic History - - Government, War, Law, and Regulation - - - Africa; Oceania
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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.:
Craig Burnside & David Dollar, 2000.
"Aid, Policies, and Growth,"
American Economic Review,
American Economic Association, vol. 90(4), pages 847-868, September.
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