IDEAS home Printed from https://ideas.repec.org/p/cpr/ceprdp/12398.html
   My bibliography  Save this paper

A Dynamic Theory of Secession

Author

Listed:
  • Rohner, Dominic
  • Esteban, Joan
  • Flamand, Sabine
  • Morelli, Massimo

Abstract

This paper builds a dynamic theory of secessions, conflictual or peaceful, analyzing the forward looking interaction between groups in a country. The proposed framework allows us to jointly address several key stylized facts on secession, and generates several novel predictions. We find that if a group out of power is small enough, then the group in power can always maintain peace with an acceptable offer of surplus sharing for every period, while when there is a mismatch between the relative size and the relative surplus contribution of the minority group, conflict followed by secession can occur. Accepted peaceful secession is predicted for large groups of similar prosperity, and higher patience is associated to a higher chance of secession. We formulate as a result a number of policy recommendations on various dimensions of federalism and other institutions.

Suggested Citation

  • Rohner, Dominic & Esteban, Joan & Flamand, Sabine & Morelli, Massimo, 2018. "A Dynamic Theory of Secession," CEPR Discussion Papers 12398, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:12398
    as

    Download full text from publisher

    File URL: https://cepr.org/publications/DP12398
    Download Restriction: CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Jha, Saumitra, 2013. "Trade, Institutions, and Ethnic Tolerance: Evidence from South Asia," American Political Science Review, Cambridge University Press, vol. 107(4), pages 806-832, November.
    2. Joan Esteban & Massimo Morelli & Dominic Rohner, 2015. "Strategic Mass Killings," Journal of Political Economy, University of Chicago Press, vol. 123(5), pages 1087-1132.
    3. Alberto Alesina & Enrico Spolaore, 1997. "On the Number and Size of Nations," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 112(4), pages 1027-1056.
    4. Gino Gancia & Giacomo A M Ponzetto & Jaume Ventura, 2022. "Globalization and Political Structure," Journal of the European Economic Association, European Economic Association, vol. 20(3), pages 1276-1310.
    5. 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.
    6. Sabine Flamand, 2015. "Interregional transfers, group loyalty and the decentralization of redistribution," Economics of Governance, Springer, vol. 16(4), pages 307-330, November.
    7. Morelli, Massimo & Rohner, Dominic, 2015. "Resource concentration and civil wars," Journal of Development Economics, Elsevier, vol. 117(C), pages 32-47.
    8. Goyal, Sanjeev & Staal, Klaas, 2004. "The political economy of regionalism," European Economic Review, Elsevier, vol. 48(3), pages 563-593, June.
    9. 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.
    10. Robin Burgess & Remi Jedwab & Edward Miguel & Ameet Morjaria & Gerard Padró i Miquel, 2015. "The Value of Democracy: Evidence from Road Building in Kenya," American Economic Review, American Economic Association, vol. 105(6), pages 1817-1851, June.
    11. Ben D. MacArthur & Richard O. C. Oreffo, 2005. "Bridging the gap," Nature, Nature, vol. 433(7021), pages 19-19, January.
    12. 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.
    13. 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.
    14. Dominic Rohner & Mathias Thoenig & Fabrizio Zilibotti, 2013. "War Signals: A Theory of Trade, Trust, and Conflict," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 80(3), pages 1114-1147.
    15. Alesina, Alberto & Spolaore, Enrico, 2005. "War, peace, and the size of countries," Journal of Public Economics, Elsevier, vol. 89(7), pages 1333-1354, July.
    16. Bardhan, Pranab, 1997. "Method in the madness? a political-economy analysis of the ethnic conflicts in less developed countries," World Development, Elsevier, vol. 25(9), pages 1381-1398, September.
    17. Patrick Bolton & Gérard Roland, 1997. "The Breakup of Nations: A Political Economy Analysis," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 112(4), pages 1057-1090.
    18. Samuel Bazzi & Matthew Gudgeon, 2021. "The Political Boundaries of Ethnic Divisions," American Economic Journal: Applied Economics, American Economic Association, vol. 13(1), pages 235-266, January.
    19. 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.
    20. Flamand, Sabine, 2019. "Partial decentralization as a way to prevent secessionist conflict," European Journal of Political Economy, Elsevier, vol. 59(C), pages 159-178.
    21. Gehring, Kai & Schneider, Stephan A., 2020. "Regional resources and democratic secessionism," Journal of Public Economics, Elsevier, vol. 181(C).
    22. Hannes Mueller & Dominic Rohner, 2018. "Can power-sharing foster peace? Evidence from Northern Ireland," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 33(95), pages 447-484.
    23. Guillem López Casasnovas & Joan Rosselló Villalonga, 2014. "Fiscal Imbalances in Asymmetric Federal Regimes. The Case of Spain," Hacienda Pública Española / Review of Public Economics, IEF, vol. 209(2), pages 55-97, June.
    24. Philipp Hunziker & Lars-Erik Cederman, 2017. "No extraction without representation: The ethno-regional oil curse and secessionist conflict," Journal of Peace Research, Peace Research Institute Oslo, vol. 54(3), pages 365-381, May.
    25. 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.
    26. J. Vernon Henderson & Adam Storeygard & David N. Weil, 2012. "Measuring Economic Growth from Outer Space," American Economic Review, American Economic Association, vol. 102(2), pages 994-1028, April.
    27. Panizza, Ugo, 1999. "On the determinants of fiscal centralization: Theory and evidence," Journal of Public Economics, Elsevier, vol. 74(1), pages 97-139, October.
    28. Cederman, Lars-Erik & Weidmann, Nils B. & Gleditsch, Kristian Skrede, 2011. "Horizontal Inequalities and Ethnonationalist Civil War: A Global Comparison," American Political Science Review, Cambridge University Press, vol. 105(3), pages 478-495, August.
    29. Arzaghi, Mohammad & Henderson, J. Vernon, 2005. "Why countries are fiscally decentralizing," Journal of Public Economics, Elsevier, vol. 89(7), pages 1157-1189, July.
    30. Julian Wucherpfennig & Nils B. Weidmann & Luc Girardin & Lars-Erik Cederman & Andreas Wimmer, 2011. "Politically Relevant Ethnic Groups across Space and Time: Introducing the GeoEPR Dataset1," Conflict Management and Peace Science, Peace Science Society (International), vol. 28(5), pages 423-437, November.
    31. World Bank, 2017. "World Development Indicators 2017," World Bank Publications - Books, The World Bank Group, number 26447.
    32. Marvin Suesse, 2018. "Breaking the Unbreakable Union: Nationalism, Disintegration and the Soviet Economic Collapse," Economic Journal, Royal Economic Society, vol. 128(615), pages 2933-2967, November.
    33. Bordignon, Massimo & Brusco, Sandro, 2001. "Optimal secession rules," European Economic Review, Elsevier, vol. 45(10), pages 1811-1834, December.
    34. Buchanan, James M & Faith, Roger L, 1987. "Secession and the Limits of Taxation: Toward a Theory of Internal Exit," American Economic Review, American Economic Association, vol. 77(5), pages 1023-1031, December.
    35. 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.
    36. Paul Collier & Anke Hoeffler & Dominic Rohner, 2009. "Beyond greed and grievance: feasibility and civil war," Oxford Economic Papers, Oxford University Press, vol. 61(1), pages 1-27, January.
    37. Olofsgard, Anders, 2003. "Incentives for secession in the presence of mobile ethnic groups," Journal of Public Economics, Elsevier, vol. 87(9-10), pages 2105-2128, September.
    38. Ross, Michael L., 2004. "How Do Natural Resources Influence Civil War? Evidence from Thirteen Cases," International Organization, Cambridge University Press, vol. 58(1), pages 35-67, February.
    39. Donald Wittman, 2000. "The Wealth and Size of Nations," Journal of Conflict Resolution, Peace Science Society (International), vol. 44(6), pages 868-884, December.
    40. 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.
    41. Suesse, Marvin, 2019. "Adjusting the size of nations: Empirical determinants of separatism and the Soviet breakup," Journal of Comparative Economics, Elsevier, vol. 47(1), pages 50-64.
    42. Marvin Suesse, 2014. "Breaking the Unbreakable Union: Nationalism, Trade Disintegration and the Soviet Economic Collapse," Working Papers 0057, European Historical Economics Society (EHES).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Flamand, Sabine, 2019. "Partial decentralization as a way to prevent secessionist conflict," European Journal of Political Economy, Elsevier, vol. 59(C), pages 159-178.
    2. Enriqueta Aragonès & Clara Ponsatí, 2021. "The stability of multi-level governments," Journal of Theoretical Politics, , vol. 33(1), pages 140-166, January.
    3. Enriqueta Aragonès & Clara Ponsatí, 2019. "The Stability of Multi-Level Governments," Working Papers 1109, Barcelona School of Economics.
    4. Musatov, D. & Savvateev, A., 2022. "Mathematical models of stable jurisdiction partitions: A survey of results and new directions," Journal of the New Economic Association, New Economic Association, vol. 54(2), pages 12-38.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Joan-Maria Esteban & Sabine Flamand & Massimo Morelli & Dominic Rohner, 2018. "The Survival and Demise of the State: A Dynamic Theory of Secession," Working Papers 1028, Barcelona School of Economics.
    2. Joan Esteban & Sabine Flamand & Massimo Morelli & Dominic Rohner, 2017. "Stay, Split or Strike: Theory and Evidence on Secessionist vs Centrist Conflict," Working Papers 609, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
    3. Flamand, Sabine, 2019. "Partial decentralization as a way to prevent secessionist conflict," European Journal of Political Economy, Elsevier, vol. 59(C), pages 159-178.
    4. 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.
    5. Enrico Spolaore, 2016. "The economics of political borders," Chapters, in: Eugene Kontorovich & Francesco Parisi (ed.), Economic Analysis of International Law, chapter 1, pages 11-43, Edward Elgar Publishing.
    6. 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).
    7. Morelli, Massimo & Esteban, Joan & Flamand, Sabine & Rohner, Dominic, 2020. "A Dynamic Theory of Secessionist vs Centrist Conflict," CEPR Discussion Papers 14635, C.E.P.R. Discussion Papers.
    8. Enrico Spolaore, 2010. "Federalism, Regional Redistribution and Country Stability," Chapters, in: Núria Bosch & Marta Espasa & Albert Solé Ollé (ed.), The Political Economy of Inter-Regional Fiscal Flows, chapter 13, Edward Elgar Publishing.
    9. Enrico Spolaore, 2009. "National Borders, Conflict and Peace," CESifo Working Paper Series 2860, CESifo.
    10. Vanschoonbeek, Jakob, 2020. "Divided We Stad: a Fiscal Bargaining Model for Divided Countries," MPRA Paper 101863, University Library of Munich, Germany.
    11. Suesse, Marvin, 2019. "Adjusting the size of nations: Empirical determinants of separatism and the Soviet breakup," Journal of Comparative Economics, Elsevier, vol. 47(1), pages 50-64.
    12. Jean Lacroix & Kris James Mitchener & Kim Oosterlinck, 2023. "Domino Secessions: Evidence from the U.S," NBER Working Papers 31589, National Bureau of Economic Research, Inc.
    13. Grégoire Rota Graziosi, 2004. "La fragmentation politique, une revue de la littérature," Revue Française d'Économie, Programme National Persée, vol. 18(4), pages 193-223.
    14. Rhea Molato, 2015. "Public Debt and the Threat of Secession," Working Papers tax-mpg-rps-2015-04, Max Planck Institute for Tax Law and Public Finance.
    15. Dur, Robert & Staal, Klaas, 2008. "Local public good provision, municipal consolidation, and national transfers," Regional Science and Urban Economics, Elsevier, vol. 38(2), pages 160-173, March.
    16. Ansolabehere, Stephen & Puy, M. Socorro, 2022. "Constitutions, federalism, and national integration," European Economic Review, Elsevier, vol. 148(C).
    17. Alexander Libman, 2012. "Sub-national political regimes and asymmetric fiscal decentralization," Constitutional Political Economy, Springer, vol. 23(4), pages 302-336, December.
    18. Stephen Ansolabehere & M. Socorro Puy, 2020. "Constitutions, Federalism, and National Integration," Working Papers 2020-04, Universidad de Málaga, Department of Economic Theory, Málaga Economic Theory Research Center.
    19. 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.
    20. Anesi, Vincent, 2012. "Secessionism and minority protection in an uncertain world," Journal of Public Economics, Elsevier, vol. 96(1), pages 53-61.

    More about this item

    Keywords

    Secessions; Conflict; Surplus sharing; Mismatch;
    All these keywords.

    JEL classification:

    • C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cpr:ceprdp:12398. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://www.cepr.org .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.