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Implications of an Economic Theory of Conflict: Hindu-Muslim Violence in India

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  • Anirban Mitra
  • Debraj Ray

Abstract

We model inter-group conflict driven by economic changes within groups. We show that if group incomes are low, increasing group incomes raises violence against that group, and lowers violence generated by it. We then apply the model to data on Hindu-Muslim violence in India. Our main result is that an increase in per-capita Muslim expenditures generates a large and significant increase in future religious conflict. An increase in Hindu expenditures has negative or no effect. These findings speak to the origins of Hindu-Muslim violence in post-Independence India.

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  • Anirban Mitra & Debraj Ray, 2013. "Implications of an Economic Theory of Conflict: Hindu-Muslim Violence in India," NBER Working Papers 19090, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:19090
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    JEL classification:

    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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