In many countries extreme poverty is unnecessary. Yet it persists. We propose a simple index, denoted the Miser index, to measure the extent to which societies have poverty in the midst of affluence. It builds on the generalized Lorenz curve, but can also be seen as a measure of polarization...

We construct a dynamic theory of civil conflict hinging on inter-ethnic trust and trade. The model economy is inhabitated by two ethnic groups. Inter-ethnic trade requires imperfectly observed bilateral investments and one group has to form beliefs on the average propensity to trade of the other...

Civil war is the most prevalent form of large-scale violence and is massively destructive to life, society, and the economy. The prevention of civil war is therefore a key priority for international attention. We present an empirical analysis of what makes countries prone to civil war. Using a...