Inequality and conflict: Burning resources to support peace

C-Tier
Journal: Economics Letters
Year: 2020
Volume: 197
Issue: C

Score contribution per author:

0.503 = (α=2.01 / 2 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We consider a simple, guns-versus-butter model in which agents choose between “war” and “peace” to study the implications of inequality in resource ownership for equilibrium outcomes. Provided war is destructive, peace can emerge as the stable equilibrium, but only if the distribution of resource ownership is sufficiently even. We establish that, when this condition fails, the richer agent can destroy a portion of its resource endowment to even out the ex post distribution and thereby support peace. We also examine the importance of ex ante resource transfers and show that they are Pareto superior to burning resources.

Technical Details

RePEc Handle
repec:eee:ecolet:v:197:y:2020:i:c:s016517652030361x
Journal Field
General
Author Count
2
Added to Database
2026-01-25