The Rawlsian principle and secession-proofness in large heterogeneous societies
Michel Le Breton,
Schlomo Weber and
Jacques Dreze
No 2004061, LIDAM Discussion Papers CORE from Université catholique de Louvain, Center for Operations Research and Econometrics (CORE)
Abstract:
This paper examines a model of multi-jurisdictional formation considered by Alesina and Spolaore (1997) and Le Breton and Weber (2003), where the distribution of individuals is given by Lebesgue measure over the (finite or infinite) interval. Every jurisdiction chooses a location of a public good and shares the cost of production among its residents. Each individual covers transportation cost to the location of the public good, and contributes towards the production of the public good. We consider a notion of a secession-proof allocation where no group of individuals can make all its members better off by choosing both a location of the public good and a cost-sharing mechanism among its own members. We show that if the society's population is distributed over the real line , the only secession-proof allocation is Rawlsian, which equalizes the utilities of all individuals in the society. In the case of bounded support, we show that there is a degree of approximation to the Rawlsian solution that reconciles the secession-proofness and the weakened Rawlsian principle.
Keywords: optimal jurisdictions; secession-proofness; rawlsian allocations; effciency (search for similar items in EconPapers)
JEL-codes: D70 H20 H73 (search for similar items in EconPapers)
Date: 2004-09
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)
Downloads: (external link)
https://sites.uclouvain.be/core/publications/coredp/coredp2004.html (text/html)
Related works:
Working Paper: The Rawslian Principle and Secession-Proofness in Large Heterogeneous Societies (2004) 
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:cor:louvco:2004061
Access Statistics for this paper
More papers in LIDAM Discussion Papers CORE from Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) Voie du Roman Pays 34, 1348 Louvain-la-Neuve (Belgium). Contact information at EDIRC.
Bibliographic data for series maintained by Alain GILLIS ().