Citation

Caruso R. Def. Peace Econ. 2010; 21(3): 269-283.

Copyright

(Copyright © 2010, Informa - Taylor and Francis Group)

DOI

10.1080/10242690903568975

PMID

unavailable

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.