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The Economics of Political Borders

Listed author(s):
  • Enrico Spolaore

This paper presents concepts from economic analysis that shed light on the formation and breakup of sovereign states. First, we discuss the key trade-off between economies of scale in the provision of public goods and political costs from heterogeneity of preferences. Second, we present four economic perspectives on the formation of borders: efficient borders, borders as democratic outcomes, borders in a world of rent-seeking Leviathans, and borders as outcomes of conflict and wars. Finally, we provide an analytical illustration of the basic ideas within a simple framework.

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File URL: http://www.cesifo-group.de/portal/page/portal/DocBase_Content/WP/WP-CESifo_Working_Papers/wp-cesifo-2012/wp-cesifo-2012-06/cesifo1_wp3854.pdf
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Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 3854.

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Date of creation: 2012
Handle: RePEc:ces:ceswps:_3854
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  1. Alberto Alesina & Enrico Spolaore & Romain Wacziarg, 2003. "Trade, Growth, and the Size of Countries," Harvard Institute of Economic Research Working Papers 1995, Harvard - Institute of Economic Research.
  2. Donald Wittman, 2000. "The Wealth and Size of Nations," Journal of Conflict Resolution, Peace Science Society (International), vol. 44(6), pages 868-884, December.
  3. Michelle R. Garfinkel & Stergios Skaperdas, 2006. "Economics of Conflict: An Overview," Working Papers 050623, University of California-Irvine, Department of Economics, revised Sep 2006.
  4. Johannes Münster, 2007. "Simultaneous inter- and intra-group conflicts," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 32(2), pages 333-352, August.
  5. Enrico Spolaore & Romain Wacziarg, 2012. "Long-Term Barriers to the International Diffusion of Innovations," NBER International Seminar on Macroeconomics, University of Chicago Press, vol. 8(1), pages 11-46.
  6. Wacziarg, Romain & Spolaore, Enrico & Alesina, Alberto, 2000. "Economic Integration and Political Disintegration," Scholarly Articles 4553029, Harvard University Department of Economics.
  7. Bolton, Patrick & Roland, Gerard & Spolaore, Enrico, 1996. "Economic theories of the break-up and integration of nations," European Economic Review, Elsevier, vol. 40(3-5), pages 697-705, April.
  8. Enrico Spolaore & Alberto Alesina, 2001. "War, Peace and the Size of Countries," Harvard Institute of Economic Research Working Papers 1937, Harvard - Institute of Economic Research.
  9. Michalopoulos, Stelios & Papaioannou, Elias, 2011. "The Long-Run Effects of the Scramble for Africa," CEPR Discussion Papers 8676, C.E.P.R. Discussion Papers.
  10. Enrico Spolaore & Romain Wacziarg, 2009. "The Diffusion of Development," The Quarterly Journal of Economics, Oxford University Press, vol. 124(2), pages 469-529.
  11. Enrico Spolaore & Romain Wacziarg, 2012. "How Deep Are the Roots of Economic Development?," NBER Working Papers 18130, National Bureau of Economic Research, Inc.
  12. Klaus Desmet & Michel Breton & Ignacio Ortuño-Ortín & Shlomo Weber, 2011. "The stability and breakup of nations: a quantitative analysis," Journal of Economic Growth, Springer, vol. 16(3), pages 183-213, September.
  13. Spolaore, Enrico & Wacziarg, Romain, 2013. "War and Relatedness," CAGE Online Working Paper Series 140, Competitive Advantage in the Global Economy (CAGE).
  14. Enrico Spolaore, 2010. "Federalism, Regional Redistribution and Country Stability," Chapters, in: The Political Economy of Inter-Regional Fiscal Flows, chapter 13 Edward Elgar Publishing.
  15. Bordignon, Massimo & Brusco, Sandro, 2001. "Optimal secession rules," European Economic Review, Elsevier, vol. 45(10), pages 1811-1834, December.
  16. Alesina, Alberto & Spolaore, Enrico, 2006. "Conflict, defense spending, and the number of nations," European Economic Review, Elsevier, vol. 50(1), pages 91-120, January.
  17. Ellingsen, Tore, 1998. "Externalities vs internalities: a model of political integration," Journal of Public Economics, Elsevier, vol. 68(2), pages 251-268, May.
  18. Spolaore, Enrico & Wacziarg, Romain, 2002. "Borders and Growth," Research Papers 1761, Stanford University, Graduate School of Business.
  19. Enrico Spolaore, 2004. "Economic Integration, International Conflict and Political Unions," Rivista di Politica Economica, SIPI Spa, vol. 94(5), pages 3-50, September.
  20. Garfinkel, Michelle R., 2004. "Stable alliance formation in distributional conflict," European Journal of Political Economy, Elsevier, vol. 20(4), pages 829-852, November.
  21. Alberto Alesina & Enrico Spolaore, 1997. "On the Number and Size of Nations," The Quarterly Journal of Economics, Oxford University Press, vol. 112(4), pages 1027-1056.
  22. Enrico Spolaore, 2008. "Civil conflict and secessions," Economics of Governance, Springer, vol. 9(1), pages 45-63, January.
  23. Paolo Mauro, 1995. "Corruption and Growth," The Quarterly Journal of Economics, Oxford University Press, vol. 110(3), pages 681-712.
  24. Eric Weese, 2011. "Political Mergers as Coalition Formation," Working Papers 997, Economic Growth Center, Yale University.
  25. Michelle R. Garfinkel, 2003. "Global Threats and the Domestic Struggle for Power," Public Economics 0306001, EconWPA.
  26. Friedman, David, 1977. "A Theory of the Size and Shape of Nations," Journal of Political Economy, University of Chicago Press, vol. 85(1), pages 59-77, February.
  27. Le Breton, Michel & Weber, Shlomo, 2003. "The Art of Making Everybody Happy : How to Prevent a Secession," IDEI Working Papers 164, Institut d'Économie Industrielle (IDEI), Toulouse.
  28. Jack Hirshleifer, 1989. "Conflict and rent-seeking success functions: Ratio vs. difference models of relative success," Public Choice, Springer, vol. 63(2), pages 101-112, November.
  29. Robert P. Inman & Daniel L. Rubinfeld, 2005. "Federalism and the Democratic Transition: Lessons from South Africa," American Economic Review, American Economic Association, vol. 95(2), pages 39-43, May.
  30. Leamer, Edward E., 2012. "The Craft of Economics: Lessons from the Heckscher-Ohlin Framework," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262016877, December.
  31. Patrick Bolton & Gérard Roland, 1997. "The Breakup of Nations: A Political Economy Analysis," The Quarterly Journal of Economics, Oxford University Press, vol. 112(4), pages 1057-1090.
  32. repec:ags:afjare:141665 is not listed on IDEAS
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