Formation of Nations in a Welfare-State Minded World
AbstractWe model the endogenous formation of nations in a world economy where nations apply redistributive policies. We show that people's preference for stronger redistributive policies may lead to greater inequality in the world's distribution of income as a result of rich individuals tending to form their own nations. By the same token, stable economic integration occurs only when redistributive policies are not too strong.
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Bibliographic InfoPaper provided by Iowa State University, Department of Economics in its series Staff General Research Papers with number 5201.
Date of creation: 01 Jan 2000
Date of revision:
Publication status: Published in Journal of Public Economic Theory 2000, vol. 2, pp. 157-181
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Postal: Iowa State University, Dept. of Economics, 260 Heady Hall, Ames, IA 50011-1070
Phone: +1 515.294.6741
Fax: +1 515.294.0221
Web page: http://www.econ.iastate.edu
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Other versions of this item:
- Dagan, Nir & Volij, Oscar, 2000. " Formation of Nations in a Welfare-State Minded World," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 2(2), pages 157-81.
- Nir Dagan & Oscar Volij, 1995. "Formation of Nations in a Welfare State Minded World," Economic theory and game theory 010, Nir Dagan, revised Aug 1999.
- Nir Dagan & Oscar Volij, 1995. "Formation of Nations in a Welfare State Minded World," Economic theory and game theory 002, Oscar Volij, revised Aug 1999.
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