Formation of Nations in a Welfare State Minded World
We model the endogenous formation of nations in a world economy where nations apply redistributive policies. We show that stronger distributive policies may lead to greater inequality in the world's distribution of income as a result of rich individuals tending to form their own nations. By the same token, stable economic integration occurs only when redistributive policies are not too strong.
|Date of creation:||1995|
|Date of revision:||Aug 1999|
|Publication status:||Published in Journal of Public Economic Theory 2:157-181 (2000)|
|Contact details of provider:|| Postal: Oscar Volij, Department of Economics, Ben-Gurion University, Beer-Sheva 84105, Israel|
Web page: http://volij.co.il/
|Order Information:||Web: http://volij.co.il/addr.html|
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