A Linear Model of Geopolitics

Ben G. Li and Penglong Zhang

Papers from arXiv.org

Abstract: Geopolitics is shaped by trade and borders. We develop a general-equilibrium model in which both are endogenously determined in a linear world. Their interaction rationalizes geopolitical outcomes that cannot be obtained when either trade or borders are treated as exogenous. This unified and tractable framework is used to study political economy, security, and ideology within and across states.

Date: 2026-03
New Economics Papers: this item is included in nep-int
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