Conflict and Governance

Economists and political scientists have recently begun to study formally how conftict and the possibility of conftict affects resource allocation and economic performance.! For example, an extensive empiricalliterature suggests that conftict and political instability adversely affects economic development and that higher 2 inequality causes poor economic performance by inducing increased conftict. In this paper I argue that a serious ftaw in this research has taken too individu­ 3 alistic ...