Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/61035
Authors: 
Spolaore, Enrico
Year of Publication: 
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

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