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Multiple Membership and Federal Sructures

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Author Info

  • Alexei Savvateev

    (New Economic School)

  • Michel Le Breton

    (Universitè de Toulouse I, GREMAQ and IDEI)

  • Valery Makarov

    (Central Economics and Mathematics Institute and New Economic School)

  • Shlomo Weber

    (Southern Methodist University and CEPR)

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.

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Bibliographic Info

Paper provided by Fondazione Eni Enrico Mattei in its series Working Papers with number 2008.41.

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Date of creation: May 2008
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Handle: RePEc:fem:femwpa:2008.41

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Keywords: Partitions; Federal Structures; Stability; Cooperative Games;

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References

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  1. Alesina, Alberto & Spolaore, Enrico, 1997. "On the Number and Size of Nations," The Quarterly Journal of Economics, MIT Press, vol. 112(4), pages 1027-56, November.
  2. Alesina, Alberto F & Angeloni, Ignazio & Etro, Federico, 2003. "International Unions," CEPR Discussion Papers 3913, C.E.P.R. Discussion Papers.
  3. Casella, Alessandra, 2001. "The Role of Market Size in the Formation of Jurisdictions," Review of Economic Studies, Wiley Blackwell, vol. 68(1), pages 83-108, January.
  4. Jehiel, Philippe & Scotchmer, Suzanne, 2001. "Constitutional Rules of Exclusion in Jurisdiction Formation," Review of Economic Studies, Wiley Blackwell, vol. 68(2), pages 393-413, April.
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Cited by:
  1. Libman, Alexander Mikhailovich, 2009. "Эндогенные Границы И Распределение Власти В Федерациях И Международных Сообществах
    [ENDOGENOUS BOUNDARIES AND DISTRIBUTION O
    ," MPRA Paper 16473, University Library of Munich, Germany.
  2. Lind, Jo Thori, 2010. "The Number of Organizations in Heterogeneous Societies," Memorandum 08/2010, Oslo University, Department of Economics.

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