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Title: On the Theory of Ethnic Conflict

Author(s): Francesco Caselli and Wilbur John Coleman II

Publication Date: April 2006

Keyword(s): ethnic distance and exploitation

Programme Area(s): International Macroeconomics

Abstract: 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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Bibliographic Reference

Caselli, F and Coleman II, W. 2006. 'On the Theory of Ethnic Conflict'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=5622