Does Inequality lead to Conflict?
Published By: UNU-WIDER on eSS | Published Date: June, 01 , 2005This paper presents a simple model to show how distributional concerns can engender
social conflict. They have a two period model, where the cost of conflict is endogenous in
the sense that parties involved have full control over how much conflict they can create.
We find that anticipated future inequality plays a crucial role in determining the level of
conflict in the current period. The model also provides an explanation for why similar
levels of inequality may exhibit drastically different levels of conflict. Further, they argue
that the link between inequality and conflict may be non-monotonic. [Research Paper No. 2005/34]
Author(s): Indranil Dutta, Ajit Mishra | Posted on: Dec 01, 2010 | Views(773) | Download (584)