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The stability threshold and two facets of polarization

Author

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  • HAIMANKO, Ori
  • LE BRETON, Michel
  • WEBER, Shlomo

Abstract

In this paper we introduce the stability threshold that quantifies the minimal returns to size sufficient to prevent credible secession threats by regions of the country. Severity of internal tension has been linked to degree of polarization of citizens' preferences and characteristics. We show that the increasing degree of polarization does not, in general, raise the stability threshold, even though this hypothesis holds in some asymptotic sense. We also examine the question of the number of smaller countries to be created if the unity of the large country is not sustainable, and investigate the link between this number and the degree of the country polarization.

Suggested Citation

  • HAIMANKO, Ori & LE BRETON, Michel & WEBER, Shlomo, 2005. "The stability threshold and two facets of polarization," CORE Discussion Papers 2005035, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  • Handle: RePEc:cor:louvco:2005035
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    File URL: https://uclouvain.be/en/research-institutes/immaq/core/dp-2005.html
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    References listed on IDEAS

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    1. Haimanko, Ori & Le Breton, Michel & Weber, Shlomo, 2004. "Voluntary formation of communities for the provision of public projects," Journal of Economic Theory, Elsevier, vol. 115(1), pages 1-34, March.
    2. Haimanko, Ori & Le Breton, Michel & Weber, Shlomo, 2005. "Transfers in a polarized country: bridging the gap between efficiency and stability," Journal of Public Economics, Elsevier, vol. 89(7), pages 1277-1303, July.
    3. Michel Le Breton & Shlomo Weber, 2003. "The Art of Making Everybody Happy: How to Prevent a Secession," IMF Staff Papers, Palgrave Macmillan, vol. 50(3), pages 1-4.
    4. Alberto Alesina & Reza Baqir & Caroline Hoxby, 2004. "Political Jurisdictions in Heterogeneous Communities," Journal of Political Economy, University of Chicago Press, vol. 112(2), pages 348-396, April.
    5. Jean-Yves Duclos & Joan Esteban & Debraj Ray, 2004. "Polarization: Concepts, Measurement, Estimation," Econometrica, Econometric Society, vol. 72(6), pages 1737-1772, November.
    6. 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.
    7. Wang, You-Qiang & Tsui, Kai-Yuen, 2000. " Polarization Orderings and New Classes of Polarization Indices," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 2(3), pages 349-363.
    8. Francesco Caselli & Wilbur John Coleman II, 2013. "On The Theory Of Ethnic Conflict," Journal of the European Economic Association, European Economic Association, vol. 11, pages 161-192, January.
    9. Esteban, Joan & Ray, Debraj, 1999. "Conflict and Distribution," Journal of Economic Theory, Elsevier, vol. 87(2), pages 379-415, August.
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    11. repec:hrv:faseco:4553034 is not listed on IDEAS
    12. Esteban, Joan & Ray, Debraj, 1994. "On the Measurement of Polarization," Econometrica, Econometric Society, vol. 62(4), pages 819-851, July.
    13. Dimitriy Gershenson & Herschel I. Grossman, 1999. "Civil Conflict: Ended Or Never Ending?," Working Papers 99-31, Brown University, Department of Economics.
    14. Grossman, Herschel I, 1991. "A General Equilibrium Model of Insurrections," American Economic Review, American Economic Association, vol. 81(4), pages 912-921, September.
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    Citations

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    Cited by:

    1. Rodriguez-Pose, Andres & Stermsek, Marko, 2014. "The Economics of Secession – Analysing the economic impact of the collapse of the former Yugoslavia," CEPR Discussion Papers 10134, C.E.P.R. Discussion Papers.
    2. Vincent Anesi & Philippe De Donder, 2011. "Voting under the threat of secession: accommodation vs. repression," Working Papers 2011/40, Institut d'Economia de Barcelona (IEB).
    3. Roy, Sunanda & Wu, Kuan Chuen & Chandra, Abhijit, 2015. "Uncovering the "Will of the People": Measuring Preference Polarization among Voters," Staff General Research Papers Archive 38358, Iowa State University, Department of Economics.
    4. Vincent Anesi & Philippe De Donder, 2013. "Voting under the threat of secession: accommodation versus repression," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 41(2), pages 241-261, July.
    5. Hudson Meadwell, 2011. "Spatial models of secession-proofness and equilibrium size," Quality & Quantity: International Journal of Methodology, Springer, vol. 45(3), pages 641-652, April.
    6. Matthias Dahm, 2010. "Free mobility and taste-homogeneity of jurisdiction structures," International Journal of Game Theory, Springer;Game Theory Society, vol. 39(1), pages 259-272, March.

    More about this item

    Keywords

    polarization; secession; stability threshold; clusters;

    JEL classification:

    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General
    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption

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