Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/47283
Authors: 
Mehlum, Halvor
Moene, Karl Ove
Year of Publication: 
2010
Series/Report no.: 
Memorandum // Department of Economics, University of Oslo 2010,16
Abstract: 
We explore the implications of having a divided society where group leaders have motives for aggression towards other groups but where entrepreneurs have a desire for cooperation and peace. We assert that it is members of the elites who start conflicts and wage wars while the entrepreneurs undertake the type of economic activities that they find most profitable given the circumstances. We derive implications for peace and conflict. We find conflict induced poverty traps with self-fulfilling expectations about conflict and we derive implications for peace building strategies.
Subjects: 
Conflict
investments
trust
cooperation
JEL: 
C73
D72
D74
Document Type: 
Working Paper

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