BUTTER, GUNS AND ICE-CREAM THEORY AND EVIDENCE FROM SUB-SAHARAN AFRICA

Raul Caruso ()

Defence and Peace Economics, 2010, vol. 21, issue 3, 269-283

Abstract: This paper is intended to complement the existing literature on civil wars. First, it presents a simple theoretical model of conflict that defines a two-sector economy. In a contested sector, two agents struggle to appropriate the maximum possible fraction of a contestable output. In an uncontested sector, they hold secure property rights over the production of some goods. Agents split their resource endowment between 'butter', 'guns' and 'ice-cream'. Following the theoretical insights the empirical analysis focuses on the relationship between civil wars and different sectors of the economy. In particular, a panel probit specification shows that the incidence of a civil war decreases in the size of manufacturing sector.

Keywords: Civil war; Resource curse; Butter; guns and ice-cream; Structure of the economy; Panel probit analysis (search for similar items in EconPapers)
Date: 2010
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DOI: 10.1080/10242690903568975

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