haku: @indexterm conflict / yhteensä: 578
viite: 9 / 578
Tekijä:Bo, E. Dal
Bo, P. Dal
Otsikko:Workers, warriors and criminals: social conflict in general equilibrium
Lehti:Journal of the European Economic Association
2011 : AUG, VOL. 9:4, p.646-677
equilibrium analysis
economic shocks
property rights
Tiivistelmä:We incorporate appropriation activities (social conflict) into canonical trade models and investigate how economic shocks and policies affect the conflict intensity. We demonstrate that not all shocks that could improve the wealth of society reduce conflict: positive shocks to labor-intensive industries decrease conflict, while positive shocks to capital-intensive industries increase it. The essential requirement is that conflict activities must be more labor intensive than the economy as this determines the shocks' effect on the conflict returns and costs. Our theory is consistent with several observed conflict patterns and implies that empirical work should recognize the relative factor intensities of the productive and conflict sectors. Incorporating appropriation into a canonic general equilibrium model impacts what policies may be deemed desirable: to reduce conflict and establish Pareto-improvements policy must be distortionary, while reforms appearing efficiency-enhancing under the unrealistic assumption of perfect property rights can backfire. This offers one explanation for why reforms basing on traditional models without appropriation may be delayed and become unpopular after implementation, and why societies may favor seemingly inefficient redistribution.
SCIMA tietueen numero: 275577
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