Country Size and Public Good Provision
AbstractThis paper studies the equilibrium size of countries. Individuals in smallcountries have greater influence over the nature of political decision mak-ing while individuals in large countries have the advantage of more publicgoods and lower tax rates. The model implies that (i) there exists excessiveincentives to separate, though this need not be the case for all sets of seces-sion rules studied; (ii) an exogenous increase in public spending decreasescountry size; (iii) countries with a presidential-congressional democracy arelarger than countries with a parliamentary democracy.
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Bibliographic InfoPaper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 04-026/1.
Date of creation: 02 Mar 2004
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country size; public spending; structure of government;
Find related papers by JEL classification:
- D7 - Microeconomics - - Analysis of Collective Decision-Making
- H1 - Public Economics - - Structure and Scope of Government
- H2 - Public Economics - - Taxation, Subsidies, and Revenue
- H7 - Public Economics - - State and Local Government; Intergovernmental Relations
This paper has been announced in the following NEP Reports:
- NEP-ALL-2004-04-25 (All new papers)
- NEP-CDM-2004-04-25 (Collective Decision-Making)
- NEP-PBE-2004-04-25 (Public Economics)
- NEP-PUB-2004-05-02 (Public Finance)
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