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Rationality as a Barrier to Peace: Micro-Evidence from Kosovo

  • Bhaumik, Sumon K.

    ()

    (University of Sheffield)

  • Gang, Ira N.

    ()

    (Rutgers University)

  • Yun, Myeong-Su

    ()

    (Tulane University)

Despite a significant expansion of the literature on conflicts and fragility of states, only a few systematic attempts have been made to link the theoretical literature on social conflicts to the available micro-level information about the people who are involved in these conflicts. We address this lacuna in the literature using a household-level data set from Kosovo. Our analysis suggests that it is individually rational for competing ethnic communities, Kosovo Albanians and Kosovo Serbs, to resist a quick agreement on a social contract to share the region’s resources.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 2682.

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Length: 32 pages
Date of creation: Mar 2007
Date of revision:
Publication status: published in: Comparative Economic Studies, 51(2): 242-264, 2009
Handle: RePEc:iza:izadps:dp2682
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  1. Acemoglu, Daron, 2003. "Why not a political Coase theorem? Social conflict, commitment, and politics," Journal of Comparative Economics, Elsevier, vol. 31(4), pages 620-652, December.
  2. Moene, K.O., 1990. "Poverty And Landownership," Memorandum 03/1990, Oslo University, Department of Economics.
  3. Joan Esteban & Debraj Ray, 2007. "A Model of Ethnic Conflict," UFAE and IAE Working Papers 701.07, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
  4. Tony Addison & S Mansoob Murshed, 2010. "From Conflict to Reconstruction: Reviving the Social Contract," Working Papers id:3206, eSocialSciences.
  5. Maitra, Pushkar & Ray, Ranjan, 2003. "The effect of transfers on household expenditure patterns and poverty in South Africa," Journal of Development Economics, Elsevier, vol. 71(1), pages 23-49, June.
  6. Bhaumik, Sumon K. & Gang, Ira N. & Yun, Myeong-Su, 2005. "Ethnic Conflict and Economic Disparity: Serbians and Albanians in Kosovo," IZA Discussion Papers 1772, Institute for the Study of Labor (IZA).
  7. Collier, Paul & Hoeffler, Anke, 1998. "On Economic Causes of Civil War," Oxford Economic Papers, Oxford University Press, vol. 50(4), pages 563-73, October.
  8. Hirshleifer, Jack, 1995. "Anarchy and Its Breakdown," Journal of Political Economy, University of Chicago Press, vol. 103(1), pages 26-52, February.
  9. Mckinley, Terry & Alarcon, Diana, 1995. "The prevalence of rural poverty in Mexico," World Development, Elsevier, vol. 23(9), pages 1575-1585, September.
  10. Frank A. Scott & John Garen & Mark Berger, 1995. "Do health insurance and pension costs reduce the job opportunities of older workers?," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 48(4), pages 775-791, July.
  11. Alberto Abadie & Javier Gardeazabal, 2001. "The Economic Costs of Conflict: A Case-Control Study for the Basque Country," NBER Working Papers 8478, National Bureau of Economic Research, Inc.
  12. Armin Falk & Ernst Fehr & Urs Fischbacher, 2003. "Reasons for Conflict: Lessons from Bargaining Experiments," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 159(1), pages 171-, March.
  13. Esteban, Joan & Ray, Debraj, 1999. "Conflict and Distribution," Journal of Economic Theory, Elsevier, vol. 87(2), pages 379-415, August.
  14. T.D. Stanley & Stephen B. Jarrell, 1998. "Gender Wage Discrimination Bias? A Meta-Regression Analysis," Journal of Human Resources, University of Wisconsin Press, vol. 33(4), pages 947-973.
  15. Edward Miguel & Shanker Satyanath & Ernest Sergenti, 2004. "Economic Shocks and Civil Conflict: An Instrumental Variables Approach," Journal of Political Economy, University of Chicago Press, vol. 112(4), pages 725-753, August.
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