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Multiple Membership and Federal Sructures

Author

Listed:
  • Alexei Savvateev

    (New Economic School)

  • Michel Le Breton

    (Universitè de Toulouse I, GREMAQ and IDEI)

  • Valery Makarov

    (Central Economics and Mathematics Institute and New Economic School)

  • Shlomo Weber

    (Southern Methodist University and CEPR)

Abstract

We consider a model of the “world" with several regions that may create a unified entity or be partitioned into several unions (countries). The regions have distinct preferences over policies chosen in the country to which they belong and equally share the cost of public policies. It is known that stable \political maps" or country partitions, that do not admit a threat of secession by any group of regions, may fail to exist. To rectify this problem, in line with the recent trend for an increased autonomy and various regional arrangements, we consider federal structures, where a region can simultaneously be a part of several unions. We show that, under very general conditions, there always exists a stable federal structure.

Suggested Citation

  • Alexei Savvateev & Michel Le Breton & Valery Makarov & Shlomo Weber, 2008. "Multiple Membership and Federal Sructures," Working Papers 2008.41, Fondazione Eni Enrico Mattei.
  • Handle: RePEc:fem:femwpa:2008.41
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    File URL: https://www.feem.it/m/publications_pages/NDL2008-041.pdf
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    References listed on IDEAS

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    1. 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.
    2. Alberto Alesina & Ignazio Angeloni & Federico Etro, 2005. "International Unions," American Economic Review, American Economic Association, vol. 95(3), pages 602-615, June.
    3. Philippe Jehiel & Suzanne Scotchmer, 2001. "Constitutional Rules of Exclusion in Jurisdiction Formation," Review of Economic Studies, Oxford University Press, vol. 68(2), pages 393-413.
    4. Alessandra Casella, 2001. "The Role of Market Size in the Formation of Jurisdictions," Review of Economic Studies, Oxford University Press, vol. 68(1), pages 83-108.
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    Cited by:

    1. 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.
    2. Lind, Jo Thori, 2010. "The Number of Organizations in Heterogeneous Societies," Memorandum 08/2010, Oslo University, Department of Economics.

    More about this item

    Keywords

    Partitions; Federal Structures; Stability; Cooperative Games;

    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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