Formation of Nations in a Welfare‐State Minded World

Nir Dagan () and Oscar Volij ()

Journal of Public Economic Theory, 2000, vol. 2, issue 2, 157-181

Abstract: We model the endogenous formation of nations in a world economy where nations apply redistributive policies. We show that people's preference for stronger redistributive 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: 2000
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https://doi.org/10.1111/1097-3923.00035

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Working Paper: Formation of Nations in a Welfare-State Minded World (2000)
Working Paper: Formation of Nations in a Welfare State Minded World (1999)
Working Paper: Formation of Nations in a Welfare State Minded World (1999)
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