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Political geography

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  • Federico Etro

Abstract

I study a model of geopolitical organization endogenizing the size of nations, their public spending and their degree of openness. The optimal geography may not be a stable equilibrium and a bias toward too many countries tends to emerge. An exogenous increase in openness tends to reduce the size of countries but also to increase the size of their public sectors. When openness is endogenous there can be multiple equilibria, some with globalization backlash associated with large nations and small governments and others with smaller countries, bigger governments and high openness. However, stable equilibria may imply excessive globalization, too many countries and too much government spending. Copyright Springer Science + Business Media, Inc. 2006

Suggested Citation

  • Federico Etro, 2006. "Political geography," Public Choice, Springer, vol. 127(3), pages 321-343, June.
    • Handle: RePEc:kap:pubcho:v:127:y:2006:i:3:p:321-343
    DOI: 10.1007/s11127-006-2746-2
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    References listed on IDEAS

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    Cited by:

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    2. Gregorini, Filippo, 2015. "Political geography and income inequalities," Research in Economics, Elsevier, vol. 69(3), pages 439-452.
    3. Congdon Fors, Heather, 2014. "Do island states have better institutions?," Journal of Comparative Economics, Elsevier, vol. 42(1), pages 34-60.
    4. Philippe De Donder & Michel Le Breton & Eugenio Peluso, 2012. "Majority Voting in Multidimensional Policy Spaces: Kramer–Shepsle versus Stackelberg," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 14(6), pages 879-909, December.
    5. Etro, Federico, 2008. "Growth leaders," Journal of Macroeconomics, Elsevier, vol. 30(3), pages 1148-1172, September.
    6. Libman, Alexander Mikhailovich, 2009. "Эндогенные Границы И Распределение Власти В Федерациях И Международных Сообществах [ENDOGENOUS BOUNDARIES AND DISTRIBUTION OF POWER In the Federation]," MPRA Paper 16473, University Library of Munich, Germany.
    7. Vanschoonbeek, Jakob, 2020. "Divided We Stad: a Fiscal Bargaining Model for Divided Countries," MPRA Paper 101863, University Library of Munich, Germany.
    8. Ahmed Mahmud, 2011. "The creation of multi-ethnic nations with or without a core region," Public Choice, Springer, vol. 147(3), pages 359-376, June.
    9. Filippo Gregorini, 2007. "Political Geography and Income Inequalities," DISCE - Quaderni dell'Istituto di Teoria Economica e Metodi Quantitativi itemq0746, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
    10. Sverker C. Jagers & Marina Povitkina & Martin Sjöstedt & Aksel Sundström, 2016. "Paradise Islands? Island States and Environmental Performance," Sustainability, MDPI, vol. 8(3), pages 1-24, March.
    11. Blankart Charles B. & Koester Gerrit B., 2007. "Theoretischer und empirischer wissenschaftlicher Fortschritt / Theoretical and empirical scientific progress: Eine kritische Analyse des Buches von Alesina und Spolaore: „The Size of Nations“ / A crit," ORDO. Jahrbuch für die Ordnung von Wirtschaft und Gesellschaft, De Gruyter, vol. 58(1), pages 167-180, January.
    12. Wolf-Heimo GRIEBEN, 2004. "Globalization, Labor Market Rigidities and Multiple Equilibria," DEGIT Conference Papers c009_020, DEGIT, Dynamics, Economic Growth, and International Trade.
    13. Radax, Wolfgang, 2009. "The number and size of nations revisited: Endogenous border formation with non-uniform population distributions," MPRA Paper 15783, University Library of Munich, Germany.
    14. Klaas Staal, 2004. "Country Size and Public Good Provision," Tinbergen Institute Discussion Papers 04-026/1, Tinbergen Institute.
    15. Philippe De Donder & Michel Le Breton & Eugenio Peluso, 2012. "On the (sequential) majority choice of public good size and location," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 39(2), pages 457-489, July.
    16. Dan Stegarescu, 2009. "The effects of economic and political integration on fiscal decentralization: evidence from OECD countries," Canadian Journal of Economics, Canadian Economics Association, vol. 42(2), pages 694-718, May.

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