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Fostering Cooperation: The Conflict-Reducing Effects of Inter-Village Competition for Government Transfers

By Teevrat Garg, Caterina Gennaioli, Stefania Lovo, and Gregor Singer

American Economic Journal: Applied Economics

We examine the effect of inter-group competition on within-group violent conflict in Indonesia. Using a triple-differences design, we find that higher competition for national government transfers between villages reduces within-village conflict. These ...