Article

Aggressive Elites and Vulnerable Entrepreneurs: Trust and Cooperation in the Shadow of Conflict

Halvor Mehlum and Karl Moene

in The Oxford Handbook of the Economics of Peace and Conflict

Published in print April 2012 | ISBN: 9780195392777
Published online November 2012 | | DOI: http://dx.doi.org/10.1093/oxfordhb/9780195392777.013.0028

Series: Oxford Handbooks

 Aggressive Elites and Vulnerable Entrepreneurs: Trust and Cooperation in the Shadow of Conflict

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This article explores the tendency for poverty and conflict, as well as for prosperity and peace, to reinforce one another, examining two specific factors. One is the type of rents that adversaries may contest, as rents can differ in terms of the vulnerability of their value to conflict; more vulnerable rents tend to induce more peace, whereas less vulnerable rents have the opposite effect. The second factor concerns the relationship between the elites and the entrepreneurs in their respective groups—specifically, the extent to which the elites care about their entrepreneurs. While these two factors can predispose countries to either virtuous or vicious circles, multiple equilibria are also possible.

Keywords: poverty; conflict; vulnerable rents; entrepreneurs

Article.  9174 words. 

Subjects: Economics ; Econometric and Statistical Methods and Methodology: General ; Health, Education, and Welfare

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