Trade openness and the settlement of domestic disputes in the shadow of the future

© 2015 University of Venice. We explore the severity of an ongoing dispute over a productive resource within a country that participates in world trade. In addition to arming, the contending groups in our setting choose either to engage in destructive conflict or to settle their dispute peacefully. Our central objective is to characterize the conditions under which the dispute might be resolved peacefully instead of violently. The analysis underscores the intuitive roles played by the destructiveness of open conflict and the salience of the future that have been identified in the previous literature, but it also provides some novel insights into how world prices and trade openness matter. Among other things, we find that, given conflict's destructive effects and time preferences, settlement is most likely to be supported as a stable equilibrium when the "traditional" gains from trade are largest. However, there also exist circumstances under which increased trade openness can induce destructive conflict

The causes and consequences of leveraged buyouts

Leveraged buyouts

The FOMC in 1988: uncertainty's effects on monetary policy

Federal Open Market Committee ; Monetary policy

On the Stability of Group Formation: Managing the Conflict Within

This paper develops a positive analysis of stable group formation, highlighting the role of conflict management within groups. The analysis is based on a model of sequential conflict, starting with a "winner- take-all" contest for control of some resource. When a group forms, members pool their efforts in that contest and, if successful, apply the resource to a joint production process. While reducing the severity of conflict over the contestable resource relative to the case of individual conflict, the formation of groups adds another layer of conflict---that is, one between the members of the winning group over the distribution of their joint product. The effectiveness of conflict management in enabling groups to resolve this second layer of conflict in more "peaceful" ways involving less "social waste" has some important implications for the equilibrium structure of groups as well as for the allocation of resources.Endogenous group formation, competitive appropriation, conflict management.

The FOMC in 1989: walking a tightrope

Federal Open Market Committee

The economic consequences of reducing military spending

Defense contracts ; Economic policy

What is an "acceptable" rate of inflation?--a review of the issues

Inflation (Finance)

Strategic considerations in monetary policy with private information: can secrecy be avoided?

Monetary policy

The Fragile Families and Child Well-Being Study: Questions, Design, and a Few Preliminary Results

Nonmarital childbearing is important because it is increasing and because there is concern (and some evidence) that it is damaging to children and perhaps parents as well. We refer to the unions of unwed parents as fragile families because they are similar to traditional families in many respects, but more vulnerable. Most people believe that children in fragile families would be better off if their parents lived together and their fathers were more involved in their upbringing. Indeed, public policy is now attempting to enlarge the role of unwed fathers both by cutting public cash support for single mothers and by strengthening paternity establishment and child support enforcement. Yet the scientific basis for these policies is weak. We know very little about the men who father children outside marria ge, and we know even less about the nature of their relationships with their children and their children’s mothers. The Fragile Families and Child Wellbeing Study (FFS) is designed to remedy this situation by following a new birth cohort of approximately 4,700 children, including 3,600 children born to unmarried parents. The new data will be representative of nonmarital births in each of 20 cities and in U.S. cities with populations over 200,000. Both mothers and fathers will be followed for at least 4 years, and inhome assessments of children’s heath and development will be carried out when the child is 4 years old. The survey is designed to address the following questions: (1) What are the conditions and capabilities of new unwed parents, especially fathers? (2) What is the nature of the relationships in fragile families? (3) What factors push new unwed parents together and what factors pull them apart? In particular, how do labor markets, welfare, and child support public policies affect family formation? (4) How do children fare in fragile families and how is their well-being affected by parental capacities and relationships, and by public policies? The paper discusses what we know about each of these questions and how the FFS addresses each of them. It also presents preliminary findings based on data from Austin, Texas, and Oakland, California.