Formation of Nations in a Welfare State Minded World

Nir Dagan () and Oscar Volij
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Oscar Volij: Department of Economics, Brown University, and Department of Economics, Hebrew University of Jerusalem., http://volij.co.il/

Economic theory and game theory from Oscar Volij

Abstract: 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: 1995, Revised 1999-08
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Published in Journal of Public Economic Theory 2:157-181 (2000)

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Related works:
Working Paper: Formation of Nations in a Welfare State Minded World (1999)
Working Paper: Formation of Nations in a Welfare-State Minded World (2002)
Journal Article: Formation of Nations in a Welfare-State Minded World (2000)
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