Abstract

Social peace is an asset to every society. Its absence endangers the well-being and the safety of the population and the stability of states. In order to better understand the interdependencies of poverty, social peace and migration pressure the authors introduce the model of the “Edgeworth-Cube” which is an extension of the classical Edgeworth Box model by one dimension. This new dimension can either be interpreted as “aggression” (which reduces “social peace” for others) or as “migration pressure” (which results from a worldwide heterogeneous distribution of wealth), and this new dimension is modelled as a non-budget-constrained unilateral immaterial good. The “Edgeworth-Cube” also differentiates vital (essential) goods from normal (non-essential) goods. By focusing on extremely imbalanced endowments and by formal mathematical modeling the authors show in their approach that applying behavioral pressure (i.e. aggression or migration pressure) has an existential economic value for the poor on the one hand. On the other hand, the authors show that transfer payments have a systemically limited potential to keep aggression and migration pressure at bay.

Highlights

  • In order to better understand the interdependencies of poverty, social peace and migration pressure the authors introduce the model of the “Edgeworth-Cube” which is an extension of the classical Edgeworth Box model by one dimension

  • Why are some societies able to maintain a desirable level of social peace, whereas in others social peace is less developed? In other words – which mechanisms secure and endanger social peace? Which mechanisms lead to aggressive behavior of parts of a society? And which mechanisms lead to migration pressure and actuate aggressive behavior of other parts of a society?

  • Using the first order conditions one gets a central result in (6): Every player fits his marginal rate of substitution5 (MRS) to the relative price relationship on competitive markets

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Summary

Introduction

Motivation Social peace is a desirable state of a social community. In a peaceful environment people can enjoy their lives, societies can prosper, and economies can grow. The absence of peace endangers lives of individuals as well as democratic systems of social co-existence and decision making. Still different levels of social peace can be observed in different socio-economic environments. Why are some societies able to maintain a desirable level of social peace, whereas in others social peace is less developed? In other words – which mechanisms secure and endanger social peace? Which mechanisms lead to aggressive behavior of parts of a society? Which mechanisms lead to migration pressure and actuate aggressive behavior of other parts of a society? Why are some societies able to maintain a desirable level of social peace, whereas in others social peace is less developed? In other words – which mechanisms secure and endanger social peace? Which mechanisms lead to aggressive behavior of parts of a society? And which mechanisms lead to migration pressure and actuate aggressive behavior of other parts of a society?

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