Formation of Nations in a Welfare-State Minded World
AbstractWe model the endogenous formation of nations in a world economy where nations apply redistributive policies. We show that people's preference for stronger redistributive policies may lead to greater inequality in the world's distribution of income as a result of rich individuals tending to form their own nations. By the same token, stable economic integration occurs only when redistributive policies are not too strong. Copyright 2000 by Blackwell Publishing Inc.
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Bibliographic InfoArticle provided by Association for Public Economic Theory in its journal Journal of Public Economic Theory.
Volume (Year): 2 (2000)
Issue (Month): 2 ()
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Other versions of this item:
- Nir Dagan & Oscar Volij, 1995. "Formation of Nations in a Welfare State Minded World," Economic theory and game theory 010, Nir Dagan, revised Aug 1999.
- Nir Dagan & Oscar Volij, 1995. "Formation of Nations in a Welfare State Minded World," Economic theory and game theory 002, Oscar Volij, revised Aug 1999.
- Volij, Oscar & Dagan, Nir, 2000. "Formation of Nations in a Welfare-State Minded World," Staff General Research Papers 5201, Iowa State University, Department of Economics.
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