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The political economy of regionalism

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Author Info
S. Goyal ()
K. Staal () (FEW-Econometrie en besliskunde)

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Abstract

We 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 insititutions and rules in overcoming the potential inefficciency. Our paper also provides a wide range of examples to illustrate the different instituions used in actual practice to resolve such problems.

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Paper provided by Erasmus University Rotterdam, Econometric Institute in its series Econometric Institute Report with number 180.

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Date of creation: 1999
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Handle: RePEc:dgr:eureir:1999180

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Keywords: referendum secession union voting;

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Find related papers by JEL classification:
D7 - Microeconomics - - Analysis of Collective Decision-Making
H2 - Public Economics - - Taxation, Subsidies, and Revenue
H7 - Public Economics - - State and Local Government; Intergovernmental Relations

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  1. Ben Zissimos & Myrna H. Wooders, 2006. "Relaxing Tax Competition through Public Good Differentiation," Working Papers 0601, Department of Economics, Vanderbilt University. [Downloadable!]
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  2. Rajashri Chakrabarti, 2005. "Gains from a Redrawing of Political Boundaries: Evidence from State Reorganization in India," Others 0512002, EconWPA. [Downloadable!]
  3. Janos Feidler & Klaas Staal, 2008. "Centralized and decentralized of provision of public goods," Discussion Papers 236, SFB/TR 15 Governance and the Efficiency of Economic Systems, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich. [Downloadable!]
  4. Robert Dur & Klaas Staal, 2006. "Local Public Good Provision, Municipal Consolidation, and National Transfers," Discussion Papers 86, SFB/TR 15 Governance and the Efficiency of Economic Systems, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich. [Downloadable!]
    Other versions:
  5. Lind, Jo Thori, 2003. "Fractionalization and the size of government," Memorandum 21/2003, Oslo University, Department of Economics. [Downloadable!]
    Other versions:
  6. Libman, Alexander, 2009. "Russian federalism and post-Soviet integration: Divergence of development paths," MPRA Paper 12944, University Library of Munich, Germany. [Downloadable!]
  7. Klaas Staal, 2006. "Incentives for separation and incentives for public good provision," Discussion Papers 104, SFB/TR 15 Governance and the Efficiency of Economic Systems, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich. [Downloadable!]
  8. Enrico Spolaore, 2008. "Civil conflict and secessions," Economics of Governance, Springer, vol. 9(1), pages 45-63, January. [Downloadable!] (restricted)
    Other versions:
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