On the Number and Size of Nations
This paper studies the equilibrium determination of the number of political jurisdictions in different political regimes, democratic or not, and in different economic environments, with more or less economic integration. We focus on the trade off between the benefits of large jurisdictions in terms of economies of scale and the costs of heterogeneity of large and diverse populations. Our model implies that: i) democratization leads to secessions; ii) without an appropriate redistributive scheme (which we characterize) in equilibrium one observes an inefficiently large number of countries; iii) the equilibrium number of countries is increasing in the amount of economic integration. We also study the welfare effects of economic integration and free trade when the number of countries is endogenous.
|Date of creation:||Mar 1995|
|Date of revision:|
|Publication status:||published as Quarterly Journal of Economics, Vol. 107, no. 4 (November 1997): 1027-1056.|
|Contact details of provider:|| Postal: |
Web page: http://www.nber.org
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Paul Krugman, 1990.
"Increasing Returns and Economic Geography,"
NBER Working Papers
3275, National Bureau of Economic Research, Inc.
- Easterly, William & Rebelo, Sérgio, 1994.
"Fiscal Policy and Economic Growth: An Empirical Investigation,"
CEPR Discussion Papers
885, C.E.P.R. Discussion Papers.
- Easterly, William & Rebelo, Sergio, 1993. "Fiscal policy and economic growth: An empirical investigation," Journal of Monetary Economics, Elsevier, vol. 32(3), pages 417-458, December.
- William Easterly & Sergio Rebelo, 1993. "Fiscal Policy and Economic Growth: An Empirical Investigation," NBER Working Papers 4499, National Bureau of Economic Research, Inc.
- repec:cup:cbooks:9780521027922 is not listed on IDEAS
- Alesina, Alberto & Perotti, Roberto & Spolaore, Enrico, 1995.
"Togetheror separately? Issues on the costs and benefits of political and fiscal unions,"
European Economic Review,
Elsevier, vol. 39(3-4), pages 751-758, April.
- Perotti, Roberto & Spolaore, Enrico & Alesina, Alberto, 1995. "Together or Separately? Issues on the Costs and Benefits of Political and Fiscal Unions," Scholarly Articles 4553017, Harvard University Department of Economics.
- Roland Benabou, 1991.
"Workings of a City: Location, Education, and Production,"
NBER Technical Working Papers
0113, National Bureau of Economic Research, Inc.
- Benabou, Roland, 1993. "Workings of a City: Location, Education, and Production," The Quarterly Journal of Economics, MIT Press, vol. 108(3), pages 619-52, August.
- Casella, Alessandra, 1992. "On Markets and Clubs: Economic and Political Integration of Regions with Unequal Productivity," American Economic Review, American Economic Association, vol. 82(2), pages 115-21, May.
- DREZE , Jacques H., 1993. "Regions of Europe : A Feasible Status, to be discussed," CORE Discussion Papers 1993037, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- 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 1023-31, December.
- Glaeser, E.L. & Ades, A.F., 1993.
"Trade and Circuses: Explaining Urban Giants,"
Harvard Institute of Economic Research Working Papers
1646, Harvard - Institute of Economic Research.
- Bolton, Patrick & Roland, Gerard, 1997.
"The Breakup of Nations: A Political Economy Analysis,"
The Quarterly Journal of Economics,
MIT Press, vol. 112(4), pages 1057-90, November.
- Bolton, Patrick & Roland, Gérard, 1995. "The Break up of Nations: A Political Economy Analysis," CEPR Discussion Papers 1225, C.E.P.R. Discussion Papers.
- Paul M Romer, 1999.
"Increasing Returns and Long-Run Growth,"
Levine's Working Paper Archive
2232, David K. Levine.
- repec:cup:cbooks:9780521233293 is not listed on IDEAS
- Epple, Dennis & Romer, Thomas, 1991. "Mobility and Redistribution," Journal of Political Economy, University of Chicago Press, vol. 99(4), pages 828-58, August.
- 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.
- Alessandra Casella & Jonathan S. Feinstein, 1990.
"Public Goods in Trade: On the Formation of Markets and Political Jurisdictions,"
NBER Working Papers
3554, National Bureau of Economic Research, Inc.
- Casella, Alessandra & Feinstein, Jonathan, 1991. "Public Goods in Trade: On the Formation of Markets and Political Jurisdictions," CEPR Discussion Papers 511, C.E.P.R. Discussion Papers.
When requesting a correction, please mention this item's handle: RePEc:nbr:nberwo:5050. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()
If references are entirely missing, you can add them using this form.