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Multiple Membership and Federal Sructures

Alexey Savvateev (), Michel Le Breton, Valery Makarov and Shlomo Weber ()
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Michel Le Breton: Universitè de Toulouse I, GREMAQ and IDEI
Valery Makarov: Central Economics and Mathematics Institute and New Economic School

No 2008.41, Working Papers from Fondazione Eni Enrico Mattei

Abstract: We consider a model of the “world" with several regions that may create a unified entity or be partitioned into several unions (countries). The regions have distinct preferences over policies chosen in the country to which they belong and equally share the cost of public policies. It is known that stable \political maps" or country partitions, that do not admit a threat of secession by any group of regions, may fail to exist. To rectify this problem, in line with the recent trend for an increased autonomy and various regional arrangements, we consider federal structures, where a region can simultaneously be a part of several unions. We show that, under very general conditions, there always exists a stable federal structure.

Keywords: Partitions; Federal Structures; Stability; Cooperative Games (search for similar items in EconPapers)
JEL-codes: C71 D71 H41 (search for similar items in EconPapers)
Date: 2008-05
New Economics Papers: this item is included in nep-cdm, nep-gth and nep-pbe
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:fem:femwpa:2008.41

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