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Federalism, Regional Redistribution, and Country Stability

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  • Enrico Spolaore

Abstract

In recent decades a large number of new sovereign states has been created through secessions, decolonization and breakup of existing countries. Since 1990 the Soviet Union split into fifteen independent countries, Yugoslavia gave away to six sovereign states (not counting Kosovo), Czechoslavakia broke into two separate states, Eritrea seceded from Ethiopia, Namibia gained indepen- dence from South Africa, and Timor Leste left Indonesia. Today there are 193 internationally recognized sovereign states in the world, up from 74 in 1945 (the latest UN member is Montenegro, which joined in 2006). At the same time numerous countries, while remaining unified, have taken steps towards more regional autonomy and decentralization. Regional redistribution, decentralization and federalism have played a prominent role in political debates across Europe (e.g., in Belgium, Italy, Spain, the United Kingdom) and all over the world--from Cananda to Colombia, from Nigeria to South Africa, from Iraq to India.

Suggested Citation

  • Enrico Spolaore, 2008. "Federalism, Regional Redistribution, and Country Stability," Discussion Papers Series, Department of Economics, Tufts University 0726, Department of Economics, Tufts University.
  • Handle: RePEc:tuf:tuftec:0726
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    1. 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.
    2. Vanschoonbeek, Jakob, 2020. "Divided We Stad: a Fiscal Bargaining Model for Divided Countries," MPRA Paper 101863, University Library of Munich, Germany.
    3. Deck, Cary & Foster, Joshua & Song, Hongwei, 2015. "Defense against an opportunistic challenger: Theory and experiments," European Journal of Operational Research, Elsevier, vol. 242(2), pages 501-513.
    4. Dima Bogdan & Dima Ştefana Maria, 2016. "Policies for Happiness in the Global Village," Journal of Heterodox Economics, Sciendo, vol. 3(1), pages 17-53, June.
    5. Tjaša Bjedov & Simon Lapointe & Thierry Madiès & Marie Claire Villeval, 2018. "Does decentralization of decisions increase the stability of large groups?," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 51(4), pages 681-716, December.
    6. Vanschoonbeek, Jakob, 2020. "Regional (in)stability in Europe a quantitative model of state fragmentation," Journal of Comparative Economics, Elsevier, vol. 48(3), pages 605-641.
    7. Albert Solé-Ollé, 2013. "Inter-regional redistribution through infrastructure investment: tactical or programmatic?," Public Choice, Springer, vol. 156(1), pages 229-252, July.
    8. Vincent Anesi & Philippe De Donder, 2011. "Voting under the Threat of Secession: Accommodation vs. Repression," CESifo Working Paper Series 3458, CESifo Group Munich.
    9. Thierry Madiès & Grégoire Rota-Grasiozi & Jean-Pierre Tranchant & Cyril Trépier, 2018. "The economics of secession: a review of legal, theoretical, and empirical aspects," Swiss Journal of Economics and Statistics, Springer;Swiss Society of Economics and Statistics, vol. 154(1), pages 1-18, December.

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