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Conflict and Renewable Resources
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Conflict and Renewable Resources

Author

Listed:
  • Rafael Reuveny

    (School of Public and Environmental Affairs, Indiana University)

  • John W. Maxwell

    (Department of Business Economics and Public Policy, Indiana University Kelley School of Business)

Abstract

The economic literature on conflict employs a static game theoretic frame- work developed by Jack Hirshleifer. We extend this literature by explicitly introducing conflict dynamics into the model. Our specific application is based on two stylized facts. First, conflict often arises over scarce renew- able resources, and second those resources often lack well-defined and/or enforceable property rights. Our stylized model features two rival groups, each dependent on a single contested renewable resource. Each period, the groups allocate their members between resource harvesting and resource appropriation (or conflict) in order to maximize their income. This leads to a complex non-linear dynamic interaction between conflict, the two populations, and the resource. The system's steady states are identified and comparative statics are computed. As developed, the model relates most closely to conflict over renewable resources in primitive societies. The system's global dynamics are investigated in simulations calibrated for the historical society of Easter Island. The model's implications for contemporary lesser developed societies are examined.

Suggested Citation

  • Rafael Reuveny & John W. Maxwell, "undated". "Conflict and Renewable Resources," Working Papers 2004-26, Indiana University, Kelley School of Business, Department of Business Economics and Public Policy.
    • Handle: RePEc:iuk:wpaper:2004-26
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    References listed on IDEAS

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    Cited by:

    1. David Croix & Davide Dottori, 2008. "Easter Island’s collapse: a tale of a population race," Journal of Economic Growth, Springer, vol. 13(1), pages 27-55, March.
    2. Adam Jacobsson, 2009. "War and peace—cyclical phenomena?," Public Choice, Springer, vol. 141(3), pages 467-480, December.
    3. Rohner, Dominic, 2006. "Beach holiday in Bali or East Timor? Why conflict can lead to under- and overexploitation of natural resources," Economics Letters, Elsevier, vol. 92(1), pages 113-117, July.
    4. Garfinkel, Michelle R. & Skaperdas, Stergios, 2007. "Economics of Conflict: An Overview," Handbook of Defense Economics, in: Keith Hartley & Todd Sandler (ed.), Handbook of Defense Economics, edition 1, volume 2, chapter 22, pages 649-709, Elsevier.
    5. Maxwell, John W. & Reuveny, Rafael, 2005. "Continuing conflict," Journal of Economic Behavior & Organization, Elsevier, vol. 58(1), pages 30-52, September.
      • John W. Maxwell & Rafael Reuveny, 2004. "Continuing Conflict," Working Papers 2004-27, Indiana University, Kelley School of Business, Department of Business Economics and Public Policy.
    6. Morelli, Massimo & Rohner, Dominic, 2015. "Resource concentration and civil wars," Journal of Development Economics, Elsevier, vol. 117(C), pages 32-47.
    7. Good, David H. & Reuveny, Rafael, 2006. "The fate of Easter Island: The limits of resource management institutions," Ecological Economics, Elsevier, vol. 58(3), pages 473-490, June.
    8. Miguel A. Espinosa & Juan D. Prada, 2010. "Conflict and Uncertainty: A Dynamic Approach," Documentos CEDE 6716, Universidad de los Andes, Facultad de Economía, CEDE.
    9. Rafael Reuveny & John W. Maxwell & Jefferson Davis, 2011. "Dynamic Winner-Take-All Conflict," Defence and Peace Economics, Taylor & Francis Journals, vol. 22(5), pages 471-492, August.
    10. Nicolas Berman & Mathieu Couttenier & Dominic Rohner & Mathias Thoenig, 2017. "This Mine Is Mine! How Minerals Fuel Conflicts in Africa," American Economic Review, American Economic Association, vol. 107(6), pages 1564-1610, June.
    11. Kjell Hausken, 2005. "Production and Conflict Models Versus Rent-Seeking Models," Public Choice, Springer, vol. 123(1), pages 59-93, April.
    12. Zachary Dockstader & Chris T. Bauch & Madhur Anand, 2019. "Interconnections Accelerate Collapse in a Socio-Ecological Metapopulation," Sustainability, MDPI, vol. 11(7), pages 1-13, March.
    13. Soumyanetra Munshi, 2015. "On government-industry nexus and indigenous armed resistance," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2015-004, Indira Gandhi Institute of Development Research, Mumbai, India.
    14. Ibrahim Ahmed Elbadawi & Raimundo Soto, 2015. "Resource rents, institutions, and violent civil conflicts," Defence and Peace Economics, Taylor & Francis Journals, vol. 26(1), pages 89-113, February.
    15. Jeffrey R. Bloem, 2019. "Good Intentions Gone Bad? The Dodd-Frank Act and Conflict in Africa’s Great Lakes Region," HiCN Working Papers 300, Households in Conflict Network.
    16. Hausken, Kjell, 2008. "Whether to attack a terrorist's resource stock today or tomorrow," Games and Economic Behavior, Elsevier, vol. 64(2), pages 548-564, November.
    17. Pfaff, Alexander & Vélez, Maria Alejandra & Ramos, Pablo Andres & Molina, Adriana, 2015. "Framed field experiment on resource scarcity & extraction: Path-dependent generosity within sequential water appropriation," Ecological Economics, Elsevier, vol. 120(C), pages 416-429.
    18. Rymn J. Parsons, 2011. "Strengthening Sovereignty: Security and Sustainability in an Era of Climate Change," Sustainability, MDPI, vol. 3(9), pages 1-36, August.
    19. Soumyanetra Munshi, 2015. "On Government-Industry Nexus and Indigenous Armed Resistance," Working Papers id:6622, eSocialSciences.

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    Keywords

    Conflict; Dynamics; Renewable Resources;
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