The Political Economy of Heterogeneity and Conflict
---- Acknowledgments ----
This paper was prepared as keynote lecture for the CESIfo conference on "Disrupted Economic Relationships: Disasters, Sanctions and Dissolutions," organized by Volker Nitsch and Tibor Besedeš and held in Venice, Italy. We thank conference participants for their comments. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.