Cumulative Effect of Inequality : A Computational Study of Conflict Models
AbstractThis paper examines the relationship between inequality and economic growth using conflict models and computational simulations. I construct a dynamic sequential conflict model that allows us to observe the cumulative effect of inequalities in wealth and ability in a single framework. The computational simulation illustrates the dynamics of the wealth level of players. The main findings are as follows: (1) if the conflict is not intensive, then the equilibrium that achieves equal distribution of wealth is unique and stable; (2) if the conflict is intensive, the equal distribution equilibrium becomes an unstable saddle point; and furthermore (3) when the productivity of one player is lower than the other, the less productive player exploits the other through the conflict process.
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Bibliographic InfoPaper provided by Graduate School of Economics, Hitotsubashi University in its series Discussion Papers with number 2010-15.
Length: 10 p.
Date of creation: Oct 2010
Date of revision:
conflict; conflict model; inequality; war;
Find related papers by JEL classification:
- D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances
- D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
- D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
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