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Title:The economics of political borders PDF Logo
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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