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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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File URL: http://www.brunel.ac.uk/__data/assets/pdf_file/0005/342707/CEDI_08-08.pdf
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Paper provided by Centre for Economic Development and Institutions(CEDI), Brunel University in its series CEDI Discussion Paper Series with number 08-08.

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Length: 33 pages
Date of creation: Jun 2008
Date of revision:
Handle: RePEc:edb:cedidp:08-08
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