A Tentative Model of Conflict, Appropriation and Production in a two-sector Economy

Raul Caruso ()

MPRA Paper from University Library of Munich, Germany

Abstract: This paper presents a model of conflict in an economy characterized by two sectors. In a first sector labelled as contested sector two agents struggle in order to appropriate the maximum possible fraction of a contestable output. In a second sector, the uncontested sector, each agent holds secure property rights over the production of some goods. Both agents maximize an income function which can be described as a function of contributions of both sectors. Results show that the degree of returns in the uncontested sector is a powerful force which countervails the impact of destructive and unproductive interaction in the contested sector.

Keywords: Conflict; Productive and Unproductive Activities; Butter and Guns; Crime; Warlords; Civil War (search for similar items in EconPapers)
JEL-codes: D20 D74 F51 (search for similar items in EconPapers)
Date: 2007-07
New Economics Papers: this item is included in nep-afr
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:4053

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