Redistribution, Inequality and Political Conflict

Patricia Justino

No 5, HiCN Working Papers from Households in Conflict Network

Abstract: This paper analyses the relationship between redistributive policies and civil unrest. This relationship is modelled in a discrete two-period recursive model. Key theoretical assumptions and outcomes are tested empirically using data for a panel of 14 major Indian states between 1973 and 2000. The analysis shows that, in the medium-term, redistributive policies have been significantly more effective in reducing civil unrest in India than more direct solutions, such as the use of police and military forces, and have resulted in important positive externalities on economic growth. This represents an important lesson for countries where social cohesion tends to break frequently but large-scale wars may be avoidable.

Keywords: redistribution; conflict; inequality; economic growth; India; panel data (search for similar items in EconPapers)
JEL-codes: C33 O1 O53 (search for similar items in EconPapers)
Pages: 50 pages
Date: 2004
New Economics Papers: this item is included in nep-cwa and nep-pol
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

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Working Paper: Redistribution, Inequality And Political Conflict (2004)
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