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ifo Institut – Leibniz-Institut für Wirtschaftsforschung an der Universität München >
CESifo Working Papers, CESifo Group Munich >
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http://hdl.handle.net/10419/61035
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| Title: | | The economics of political borders  |
| Authors: | | Spolaore, Enrico |
| Issue Date: | | 2012 |
| Series/Report no.: | | CESifo Working Paper: Public Choice 3854 |
| Abstract: | | This paper presents concepts from economic analysis that shed light on the formation and breakup of sovereign states. First, we discuss the key trade-off between economies of scale in the provision of public goods and political costs from heterogeneity of preferences. Second, we present four economic perspectives on the formation of borders: efficient borders, borders as democratic outcomes, borders in a world of rent-seeking Leviathans, and borders as outcomes of conflict and wars. Finally, we provide an analytical illustration of the basic ideas within a simple framework. |
| Subjects: | | economies of scale heterogeneity costs conflict size of nations |
| JEL: | | N41 |
| Document Type: | | Working Paper |
| Appears in Collections: | | CESifo Working Papers, CESifo Group Munich
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