@techreport{NBERw12125,
 title = "On the Theory of Ethnic Conflict",
 author = "Francesco Caselli and Wilbur John Coleman II",
 institution = "National Bureau of Economic Research",
 type = "Working Paper",
 series = "Working Paper Series",
 number = "12125",
 year = "2006",
 month = "March",
 URL = "http://www.nber.org/papers/w12125",
 abstract = {We present a theory of ethnic conflict in which coalitions formed along ethnic lines compete for the economy%u2019s resources. The role of ethnicity is to enforce coalition membership: in ethnically homogeneous societies members of the losing coalition can defect to the winners at low cost, and this rules out conflict as an equilibrium outcome. We derive a number of implications of the model relating social, political, and economic indicators such as the incidence of conflict, the distance among ethnic groups, group sizes, income inequality, and expropriable resources.},
}