in The Review of Economic Studies
July 2013; p ublished online February 2013 .
Journal Article. Subjects: Information, Knowledge, and Uncertainy; Non-renewable Resources and Conservation; Economic Development; Analysis of Collective Decision-making. 18303 words.
We construct a theory of persistent civil conflicts, where persistence is driven by the endogenous dynamics of inter-ethnic trust and trade. In times of peace, agents belonging to two...