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On The Theory Of Ethnic Conflict

  • Francesco Caselli
  • Wilbur John Coleman II

We present a theory of ethnic conflict in which coalitions formed along ethnic lines compete for the economy's 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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Article provided by European Economic Association in its journal Journal of the European Economic Association.

Volume (Year): 11 (2013)
Issue (Month): (01)
Pages: 161-192

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Handle: RePEc:bla:jeurec:v:11:y:2013:i::p:161-192
DOI: j.1542-4774.2012.01103.x
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