TY  - RPRT
        AU  - Bakshi, Dripto
AU  - Dasgupta, Indraneel
        TI  - Identity Conflict with Cross-Border Spillovers
        PY  - 2016/Feb/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 9731
        UR  - https://www.iza.org/index.php/publications/dp9731
        AB  - We model simultaneous inter and within identity-group conflict in two territories connected by cross-territorial spill-overs. Within each territory, two groups contest the division of a group-specific public good, and all members contest the division of group income. Each group has a cross-border affiliate. Greater success (share) of its affiliate 'spills over' into higher efficiency of a group in inter-group conflict.
We find that inter-group and total conflict move together within a territory, while within-group conflict and output move in the opposite direction. A unilateral increase in cross-border spill-over reduces inter-group conflict in the source territory but increases it in the destination; an equi-proportionate bilateral increase affects conflict in a non-monotone manner. Population increase in a territory, a larger minority, weaker property rights, higher relative labour productivity of the majority, may all increase inter-group conflict in the other territory. Community-neutral growth in labour productivity within a territory reduces inter-group conflict therein.
        KW  - cross-border spillover
KW  - simultaneous between and within group contest
KW  - identity
KW  - ethnic conflict
KW  - globalization
KW  - ethnic polarization
KW  - community-biased growth
        ER  -