The political economy of regionalism
AbstractWe examine the incentives of regions in a country to unite or to separate. We find that smaller regions have greater incentives to unite, relative to larger regions. We show, however, that on the whole, majority voting on separation and union generates excessive incentives to separate. This leads us to examine the scope of alternative political institutions and rules in overcoming the potential inefficiency. Our paper also provides a wide range of examples to illustrate the different institutions used in actual practice to resolve such problems.
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Bibliographic InfoArticle provided by Elsevier in its journal European Economic Review.
Volume (Year): 48 (2004)
Issue (Month): 3 (June)
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Web page: http://www.elsevier.com/locate/eer
Other versions of this item:
- Goyal, S. & Staal, K., 1999. "The political economy of regionalism," Econometric Institute Research Papers EI 9957-/A, Erasmus University Rotterdam, Erasmus School of Economics (ESE), Econometric Institute.
- Sanjeev Goyal & Klaas Staal, 2000. "The Political Economy of Regionalism," Tinbergen Institute Discussion Papers 00-014/1, Tinbergen Institute.
- Sanjeev Goyal & Klaas Staal, 2000. "The Political Economy of Regionalism," Econometric Society World Congress 2000 Contributed Papers 0287, Econometric Society.
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