Warlords complete for turf that provides them with rents and "taxable" resources while also providing a semblance of security within their respective territories. Because such competition takes place through the use of force or the threat of the use of force, more competition can lead to lower welfare as resources are wasted on unproductive arming and fighting. Rents crowd out production, in some cases almost cmpletely so.
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Paper provided by California Irvine - School of Social Sciences in its series Papers with number
00-01-20.
Skaperdas, Stergios, 2001.
"Warlord Competition,"
Working Papers
UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
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Find related papers by JEL classification: D4 - Microeconomics - - Market Structure and Pricing E23 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - Production D24 - Microeconomics - - Production and Organizations - - - Production; Capital and Total Factor Productivity; Capacity
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Mehlum, Halvor & Moene, Karl-Ove & Torvik, Ragnar, 2003.
"Institutions and the resource curse,"
Memorandum
29/2002, Oslo University, Department of Economics.
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