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Social Composition, Social Conflict, and Economic Development

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  • Strulik, Holger

Abstract

This article shows within a simple growth model how the make up of society affects economic performance when property rights are unenforceable. It investigates behavior of non-cooperative social groups that consume, produce, and appropriate resources either peacefully or through contest. For the case of symmetric groups it is shown that economic growth is generated only in peaceful societies. For the case of asymmetric groups rebel-equilibria are investigated in which a large majority behaves peacefully although challenged by an aggressive minority. In each case it is shown how the possibility of conflict and its intensity and the rate of economic growth depend on social fractionalizaton, general productivity of the economy, and the ease at which resources are appropriated. A final part extends the analysis towards behavior of non-benevolent social elites.

Suggested Citation

  • Strulik, Holger, 2006. "Social Composition, Social Conflict, and Economic Development," Hannover Economic Papers (HEP) dp-350, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.
  • Handle: RePEc:han:dpaper:dp-350
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    3. Soares, Helena & Sequeira, Tiago Neves & Marques, Pedro Macias & Gomes, Orlando & Ferreira-Lopes, Alexandra, 2018. "Social infrastructure and the preservation of physical capital: Equilibria and transitional dynamics," Applied Mathematics and Computation, Elsevier, vol. 321(C), pages 614-632.
    4. Bertrand Crettez & Naila Hayek & Lisa Morhaim, 2019. "Growth and Insecure Private Property of Capital," Dynamic Games and Applications, Springer, vol. 9(4), pages 1042-1060, December.
    5. Matteo Cervellati & Piergiuseppe Fortunato & Uwe Sunde, 2008. "Hobbes to Rousseau: Inequality, Institutions and Development," Economic Journal, Royal Economic Society, vol. 118(531), pages 1354-1384, August.
    6. Leonardo Vera, 2013. "Some Useful Concepts for Development Economics in the Tradition of Latin American Structuralism," American Journal of Economics and Sociology, Wiley Blackwell, vol. 72(4), pages 917-948, October.
    7. Rohner, Dominic, 2011. "Reputation, group structure and social tensions," Journal of Development Economics, Elsevier, vol. 96(2), pages 188-199, November.
    8. Strulik, Holger, 2012. "Poverty, voracity, and growth," Journal of Development Economics, Elsevier, vol. 97(2), pages 396-403.

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    More about this item

    Keywords

    Social Conflict; Social Fractionalization; Property Rights; Stagnation; Growth;
    All these keywords.

    JEL classification:

    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development

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