The Rawlsian principle and secession-proofness in large heterogeneous societies
AbstractThis paper examines a model of multi-jurisdictional formation considered by Alesina and Spolaore (1997) and Le Breton and Weber (2003), where the distribution of individuals is given by Lebesgue measure over the (finite or infinite) interval. Every jurisdiction chooses a location of a public good and shares the cost of production among its residents. Each individual covers transportation cost to the location of the public good, and contributes towards the production of the public good. We consider a notion of a secession-proof allocation where no group of individuals can make all its members better off by choosing both a location of the public good and a cost-sharing mechanism among its own members. We show that if the society's population is distributed over the real line , the only secession-proof allocation is Rawlsian, which equalizes the utilities of all individuals in the society. In the case of bounded support, we show that there is a degree of approximation to the Rawlsian solution that reconciles the secession-proofness and the weakened Rawlsian principle.
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Bibliographic InfoPaper provided by Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) in its series CORE Discussion Papers with number 2004061.
Date of creation: 00 Sep 2004
Date of revision:
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optimal jurisdictions; secession-proofness; rawlsian allocations; effciency;
Other versions of this item:
- Dreze, Jacques & Le Breton, Michel & Weber, Shlomo, 2004. "The Rawslian Principle and Secession-Proofness in Large Heterogeneous Societies," IDEI Working Papers 283, Institut d'Économie Industrielle (IDEI), Toulouse.
- D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General
- H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
- H73 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Interjurisdictional Differentials and Their Effects
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Michel Le Breton & Shlomo Weber, 2003. "The Art of Making Everybody Happy: How to Prevent a Secession," IMF Staff Papers, Palgrave Macmillan, vol. 50(3), pages 4.
- Alberto Alesina & Enrico Spolaore, 1995.
"On the Number and Size of Nations,"
NBER Working Papers
5050, National Bureau of Economic Research, Inc.
- Haimanko, Ori & Le Breton, Michel & Weber, Shlomo, 2004. "Voluntary formation of communities for the provision of public projects," Journal of Economic Theory, Elsevier, vol. 115(1), pages 1-34, March.
- Le Breton, Michel & Weber, Shlomo, 2003. "The Art of Making Everybody Happy : How to Prevent a Secession," IDEI Working Papers 164, Institut d'Économie Industrielle (IDEI), Toulouse.
- Bogomolnaia, Anna & Le Breton, Michel & Savvateev, Alexei & Weber, Shlomo, 2006.
"Stability under Unanimous Consent, Free Mobility and Core,"
IDEI Working Papers
413, Institut d'Économie Industrielle (IDEI), Toulouse.
- Anna Bogomolnaia & Michel Breton & Alexei Savvateev & Shlomo Weber, 2007. "Stability under unanimous consent, free mobility and core," International Journal of Game Theory, Springer, vol. 35(2), pages 185-204, January.
- BOGOMOLNAIA, Anna & LE BRETON, Michel & SAVVATEEV, Alexei & WEBER, Shlomo, . "Stability under unanimous consent, free mobility and core," CORE Discussion Papers RP -1929, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- BOGOMOLNAIA, Anna & LE BRETON, Michel & SAVVATEEV, Alexei & WEBER, Shlomo, 2006. "Stability under unanimous consent, free mobility and core," CORE Discussion Papers 2006007, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Shlomo Wever & Alexei Savvateev & Michel Le Breton & Anna Bogomolnaia, 2005.
"The Egalitarian sharing rule in provision of public goods,"
AccessEcon, vol. 8(11), pages 1-5.
- BOGOMOLNAIA, Anna & LE BRETON, Michel & SAVVATEEV, Alexei & WEBER, Shlomo, . "The egalitarian sharing rule in provision of public goods," CORE Discussion Papers RP -1775, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
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