This paper analyses the relationship between the size of jurisdictions and the degree of redistribution. A simple political economy model with cross-border shopping and limited and impure altruism is developed in order to study how the size of jurisdictions affects both the cost of redistribution and the political objectives of such policies.
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Paper provided by Norwegian School of Economics and Business Administration- in its series Papers with number
11/00.
Length: 20 pages Date of creation: 2000 Date of revision: Handle: RePEc:fth:norgee:11/00
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Find related papers by JEL classification: K29 - Law and Economics - - Regulation and Business Law - - - Other D30 - Microeconomics - - Distribution - - - General H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies