Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/250299 
Year of Publication: 
2021
Series/Report no.: 
CREDIT Research Paper No. 21/05
Publisher: 
The University of Nottingham, Centre for Research in Economic Development and International Trade (CREDIT), Nottingham
Abstract: 
We examine how cross-community cost or benefit spillovers, arising from the consumption of group-specific public goods, affect both inter-group conflicts over the appropriation of such goods and decentralized private provision for their production. Our model integrates production versus appropriation choices, vis-à-vis group-specific public goods, with their decentralized voluntary supply, against a backdrop of such cross-community consumption spillovers. Our flexible and general formulation of consumption spillovers incorporates earlier specifications as alternative special cases. We show that stronger negative (or weaker positive) consumption spillovers across communities may reduce inter-group conflict and increase aggregate income (and consumption) in society under certain conditions. Thus, stronger negative consumption spillovers may have socially beneficial consequences. We also identify conditions under which their impact will be both conflict-augmenting and income-compressing. Our general theoretical analysis offers a conceptual structure within which to organize investigation of feedback loops linking ethnic conflict and natural resource degradation in developing country contexts.
Subjects: 
Production versus appropriation
Rent-seeking
Public good contest
Public bad
Natural resource conflict
JEL: 
D72
D74
O10
O20
Document Type: 
Working Paper

Files in This Item:
File
Size
1.02 MB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.