This paper displays an analysis of geopolitical organizations within the framework proposed by Alesina and Spolaore (1997), where heterogeneity concerns the geographical space. This model adds heterogeneity in terms of income. Main results of the paper: (i) in the normative equilibrium (social planner solution) there is an inverse relationship between income inequality and public good provision within each jurisdiction; (ii) in the positive equilibrium (equilibrium geography) we find that in some cases there are no equilibria depending upon income inequality.
Download Info
To download:
If you experience problems downloading a file, check if you have the
proper application to
view it first. Information about this may be contained
in the File-Format links below. In case of further problems read
the IDEAS help
page. Note that these files are not on the IDEAS
site. Please be patient as the files may be large.
Publisher Info
Paper provided by University of Milano-Bicocca, Department of Economics in its series Working Papers with number
152.