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Multiple Membership and Federal Sructures

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  • Le Breton, Michel
  • Makarov, Valery
  • Savvateev, Alexei
  • Weber, Shlomo

Abstract

We consider a model of the “world" with several regions that may create a unified entity or be partitioned into several unions (countries). The regions have distinct preferences over policies chosen in the country to which they belong and equally share the cost of public policies. It is known that stable \political maps" or country partitions, that do not admit a threat of secession by any group of regions, may fail to exist. To rectify this problem, in line with the recent trend for an increased autonomy and various regional arrangements, we consider federal structures, where a region can simultaneously be a part of several unions. We show that, under very general conditions, there always exists a stable federal structure.

Suggested Citation

  • Le Breton, Michel & Makarov, Valery & Savvateev, Alexei & Weber, Shlomo, 2008. "Multiple Membership and Federal Sructures," Coalition Theory Network Working Papers 37519, Fondazione Eni Enrico Mattei (FEEM).
    • Handle: RePEc:ags:feemct:37519
    DOI: 10.22004/ag.econ.37519
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    References listed on IDEAS

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    1. Philippe Jehiel & Suzanne Scotchmer, 2001. "Constitutional Rules of Exclusion in Jurisdiction Formation," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 68(2), pages 393-413.
    2. Alberto Alesina & Enrico Spolaore, 1997. "On the Number and Size of Nations," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 112(4), pages 1027-1056.
    3. Alessandra Casella, 2001. "The Role of Market Size in the Formation of Jurisdictions," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 68(1), pages 83-108.
    4. Anna Bogomolnaia & Michel Breton & Alexei Savvateev & Shlomo Weber, 2008. "Stability of jurisdiction structures under the equal share and median rules," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 34(3), pages 525-543, March.
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