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The Economics of Political Borders

  • 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
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Handle: RePEc:ces:ceswps:_3854
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  1. Michelle R. Garfinkel & Stergios Skaperdas, 2006. "Economics of Conflict: An Overview," Working Papers 050623, University of California-Irvine, Department of Economics, revised Sep 2006.
  2. Enrico Spolaore, 2008. "Federalism, Regional Redistribution, and Country Stability," Discussion Papers Series, Department of Economics, Tufts University 0726, Department of Economics, Tufts University.
  3. Spolaore, Enrico & Wacziarg, Romain, 2012. "How Deep Are the Roots of Economic Development?," CEPR Discussion Papers 8998, C.E.P.R. Discussion Papers.
  4. Stelios Michalopoulos & Elias Papaioannou, 2011. "The Long-Run Effects of the Scramble for Africa," Discussion Papers Series, Department of Economics, Tufts University 0762, Department of Economics, Tufts University.
  5. Enrico Spolaore, 2004. "Economic Integration, International Conflict and Political Unions," Rivista di Politica Economica, SIPI Spa, vol. 94(5), pages 3-50, September.
  6. 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.
  7. Enrico Spolaore & Romain Wacziarg, 2012. "War and Relatedness," Discussion Papers Series, Department of Economics, Tufts University 0769, Department of Economics, Tufts University.
  8. Klaus Desmet & Michel Le Breton & Ignacio Ortuno-Ortin & Shlomo Weber, 2009. "The Stability and Breakup of Nations: A Quantitative Analysis," Working Papers VIVES Research Centre for Regional Economics 10, KU Leuven, Faculty of Economics and Business, VIVES Research Centre for Regional Economics.
  9. Enrico Spolaore & Romain Wacziarg, 2007. "The Diffusion of Development," Discussion Papers Series, Department of Economics, Tufts University 0704, Department of Economics, Tufts University.
  10. Spolaore, Enrico & Alesina, Alberto, 2005. "War, Peace, and the Size of Countries," Scholarly Articles 4553002, Harvard University Department of Economics.
  11. 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.
  12. Enrico Spolaore & Romain Wacziarg, 2011. "Long-Term Barriers to the International Diffusion of Innovations," NBER Working Papers 17271, National Bureau of Economic Research, Inc.
  13. Michelle R. Garfinkel, 2003. "Stable Alliance Formation in Distributional Conflict," Public Economics 0305001, EconWPA, revised 16 Jun 2003.
  14. Alesina, Alberto & Spolaore, Enrico, 2006. "Conflict, defense spending, and the number of nations," European Economic Review, Elsevier, vol. 50(1), pages 91-120, January.
  15. Ellingsen, Tore, 1998. "Externalities vs internalities: a model of political integration," Journal of Public Economics, Elsevier, vol. 68(2), pages 251-268, May.
  16. 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.
  17. Enrico Spolaore & Alberto Alesina & Romain Wacziarg, 2000. "Economic Integration and Political Disintegration," American Economic Review, American Economic Association, vol. 90(5), pages 1276-1296, December.
  18. Bordignon, Massimo & Brusco, Sandro, 1999. "Optimal secession rules," ZEW Discussion Papers 99-51, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  19. Alesina, Alberto & Spolaore, Enrico & Wacziarg, Romain, 2005. "Trade, Growth and the Size of Countries," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 23, pages 1499-1542 Elsevier.
  20. 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.
  21. Spolaore, Enrico & Wacziarg, Romain, 2002. "Borders and Growth," Research Papers 1761, Stanford University, Graduate School of Business.
  22. Garfinkel, Michelle R., 2004. "Global threats and the domestic struggle for power," European Journal of Political Economy, Elsevier, vol. 20(2), pages 495-508, June.
  23. 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.
  24. Paolo Mauro, 1995. "Corruption and Growth," The Quarterly Journal of Economics, Oxford University Press, vol. 110(3), pages 681-712.
  25. Donald Wittman, 2000. "The Wealth and Size of Nations," Journal of Conflict Resolution, Peace Science Society (International), vol. 44(6), pages 868-884, December.
  26. 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.
  27. 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.
  28. Enrico Spolaore, 2008. "Civil conflict and secessions," Economics of Governance, Springer, vol. 9(1), pages 45-63, January.
  29. repec:ags:afjare:141665 is not listed on IDEAS
  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.
  31. 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.
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