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On the Theory of Ethnic Conflict

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Author Info
Francesco Caselli
Wilbur John Coleman II

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Abstract

We present a theory of ethnic conflict in which coalitions formed along ethnic lines compete for the economy%u2019s resources. The role of ethnicity is to enforce coalition membership: in ethnically homogeneous societies members of the losing coalition can defect to the winners at low cost, and this rules out conflict as an equilibrium outcome. We derive a number of implications of the model relating social, political, and economic indicators such as the incidence of conflict, the distance among ethnic groups, group sizes, income inequality, and expropriable resources.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 12125.

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Date of creation: Mar 2006
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Handle: RePEc:nbr:nberwo:12125

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Find related papers by JEL classification:
P48 - Economic Systems - - Other Economic Systems - - - Other Economic Systems: Political Economy; Legal Institutions; Property Rights
Q34 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Natural Resources and Domestic and International Conflicts
Z13 - Other Special Topics - - Cultural Economics - - - Social Norms and Social Capital; Social Networks Economic Anthropology

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