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The Welfare Economics of Autarky, Federalism, and Federation Formation

Paul Rothstein () and Gary Hoover ()

Working Papers from Western Sydney - School of Business And Technology

Abstract: Consider a group of isolated or autarkic regions. If the regions from a federation, on expects to see greater efficiency in production at the cost of reduced local control over the distribution of consumption. Under what circumstances is this tradoff even potentially beneficial to all regions?

Keywords: FEDERATION; REGIONAL ECONOMY; TAX POLICY (search for similar items in EconPapers)
JEL-codes: H11 R12 (search for similar items in EconPapers)
Pages: 34 pages
Date: 2000
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