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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://eprints.lse.ac.uk/3561/
File Function: Open access version.
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Paper provided by London School of Economics and Political Science, LSE Library in its series LSE Research Online Documents on Economics with number 3561.

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Length: 37 pages
Date of creation: Jul 2006
Date of revision:
Handle: RePEc:ehl:lserod:3561
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