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 stronger distributive 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 Oscar Volij in its series Economic theory and game theory with number 002.
Length: 20 pages
Date of creation: 1995
Date of revision: Aug 1999
Publication status: Published in Journal of Public Economic Theory 2:157-181 (2000)
Contact details of provider:
Postal: Oscar Volij, Department of Economics, Ben-Gurion University, Beer-Sheva 84105, Israel
Web page: http://volij.co.il/
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.
- Volij, Oscar & Dagan, Nir, 2000. "Formation of Nations in a Welfare-State Minded World," Staff General Research Papers 5201, Iowa State University, Department of Economics.
- 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.
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