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Conflict, Political Structure and Economic Growth in Dual-Population Lands

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Abstract

The optimal consumption growth rate for a group in a strictly political federation in a dual-population land is lower than that under partition if the group is wealthier and has a lower population growth rate than its counterpart. Even in such circumstances the group may economically benefit from joining a federation that facilitates technological transfer as long as the group’s initial technology is inferior to the hybrid. The group’s optimal consumption growth rate during a civil war is larger than those under partition and a strictly political federation if its rival’s warfare is mainly aimed at inflicting casualties.

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File URL: http://www.uow.edu.au/content/groups/public/@web/@commerce/@econ/documents/doc/uow012139.pdf
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Bibliographic Info

Paper provided by School of Economics, University of Wollongong, NSW, Australia in its series Economics Working Papers with number wp02-19.

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Length: 26 pages
Date of creation: 2002
Date of revision:
Handle: RePEc:uow:depec1:wp02-19

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Postal: School of Economics, University of Wollongong, Northfields Avenue, Wollongong NSW 2522 Australia
Phone: +612 4221-3659
Fax: +612 4221-3725
Web page: http://business.uow.edu.au/econ/index.html
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Keywords: conflict; political structure; economic growth;

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  1. David H. Bearce & Eric O'N. Fisher, 2001. "Economic Geography, Trade, and War," Working Papers 01-06, Ohio State University, Department of Economics.
  2. Gregory D. Hess & Athanasios Orphanides, 1999. "War and Democracy," CESifo Working Paper Series 201, CESifo Group Munich.
  3. Collier, Paul & Hoeffler, Anke, 1998. "On Economic Causes of Civil War," Oxford Economic Papers, Oxford University Press, vol. 50(4), pages 563-73, October.
  4. Swan, Trevor W, 2002. "Economic Growth," The Economic Record, The Economic Society of Australia, vol. 78(243), pages 375-80, December.
  5. Paul Collier & Anke Hoeffler, 2004. "Greed and grievance in civil war," Oxford Economic Papers, Oxford University Press, vol. 56(4), pages 563-595, October.
  6. Garfinkel, Michelle R, 1994. "Domestic Politics and International Conflict," American Economic Review, American Economic Association, vol. 84(5), pages 1294-1309, December.
  7. Grossman, Herschel I & Kim, Minseong, 1995. "Swords or Plowshares? A Theory of the Security of Claims to Property," Journal of Political Economy, University of Chicago Press, vol. 103(6), pages 1275-88, December.
  8. Hirshleifer, Jack, 1995. "Anarchy and Its Breakdown," Journal of Political Economy, University of Chicago Press, vol. 103(1), pages 26-52, February.
  9. Hess, Gregory D & Orphanides, Athanasios, 1995. "War Politics: An Economic, Rational-Voter Framework," American Economic Review, American Economic Association, vol. 85(4), pages 828-46, September.
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