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Distributional Disputes and Civil Conflict

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  • Herschel I. Grossman

Abstract

Some polities are able to use constitutionally prescribed political processes to settle distributional disputes, whereas in other polities distributional disputes result in civil conflict. Theoretical analysis reveals that the following properties help to make it possible to design a self-enforcing constitution that can settle recurring distributional disputes between social classes without civil conflict: *Neither social class has a big advantage in civil conflict. *The expected incremental costs of civil conflict are large relative to aggregate appropriable economic rents. *Both social classes are greatly concerned about the future consequences of their current actions. Theoretical analysis also reveals that a self-enforcing constitution can require limitations on the prerogatives of winners of constitutional contests such that on average the distribution of appropriable economic rents under the constitution is not too favorable to one social class or the other and such that the outcome of a constitutional contest does not matter too much for the current distribution of economic rents.

Suggested Citation

  • Herschel I. Grossman, 2003. "Distributional Disputes and Civil Conflict," NBER Working Papers 9794, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:9794
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    References listed on IDEAS

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    1. Alberto Alesina & Enrico Spolaore, 1997. "On the Number and Size of Nations," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 112(4), pages 1027-1056.
    2. Dimitriy Gershenson & Herschel I. Grossman, 1999. "Civil Conflict: Ended Or Never Ending?," Working Papers 99-31, Brown University, Department of Economics.
    3. Daron Acemoglu & James A. Robinson, 2001. "A Theory of Political Transitions," American Economic Review, American Economic Association, vol. 91(4), pages 938-963, September.
    4. Herschel I. Grossman, 2013. "Choosing Between Peace and War," Annals of Economics and Finance, Society for AEF, vol. 14(2), pages 765-783, November.
    5. Grossman, Herschel I, 1999. "Kleptocracy and Revolutions," Oxford Economic Papers, Oxford University Press, vol. 51(2), pages 267-283, April.
    6. Joan Esteban & Debraj Ray, 2001. "Social decision rules are not immune to conflict," Economics of Governance, Springer, vol. 2(1), pages 59-67, March.
    7. Charles M. Tiebout, 1956. "A Pure Theory of Local Expenditures," Journal of Political Economy, University of Chicago Press, vol. 64, pages 416-416.
    8. Herschel Grossman, 2002. "Constitution or Conflict?," Working Papers 2002-01, Brown University, Department of Economics.
    9. Buchanan, James M & Faith, Roger L, 1987. "Secession and the Limits of Taxation: Toward a Theory of Internal Exit," American Economic Review, American Economic Association, vol. 77(5), pages 1023-1031, December.
    10. Avinash Dixit & Gene M. Grossman & Faruk Gul, 2000. "The Dynamics of Political Compromise," Journal of Political Economy, University of Chicago Press, vol. 108(3), pages 531-568, June.
    11. Alesina, Alberto, 1988. "Credibility and Policy Convergence in a Two-Party System with Rational Voters," American Economic Review, American Economic Association, vol. 78(4), pages 796-805, September.
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    Cited by:

    1. Kevin K. Tsui, 2010. "Resource Curse, Political Entry, And Deadweight Costs," Economics and Politics, Wiley Blackwell, vol. 22(3), pages 471-497, November.
    2. Herschel I. Grossman, 2013. "Choosing Between Peace and War," Annals of Economics and Finance, Society for AEF, vol. 14(2), pages 765-783, November.

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    JEL classification:

    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions

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