Beyond divide and rule : sparking civil war to hold on power

We propose a model where an autocrat rules over an ethically divided society. The dictator carefully selects the tax rate over the subjects' production and the nation's natural resources to maximize his rents under the threat of a revolution. We show that it may be in the interest of a weak ruler to foster civil strife to increase fiscal pressure. By exacerbating existing group antagonisms the leader weakens potential opposition. Large stocks of natural resource and an unequal distribution across ethnic groups makes this strategy more profitable for the ruler.status: publishe