 How defense shapes the institutional organization of statesFabio Padovano and Yvon Rocaboy Post-Print from HAL Abstract: We analyze theoretically how the provision of military services explains the vertical and horizontal fragmentation of a state. The model innovates on the previous political economy literature which views such institutional arrangements arising only as a response to internal "technological" forces, not to strategic interactions within the state and with neighboring states. The model explains how these interactions lead communitiesof individuals to choose among three alternative types of institutional arrangements: 1) a union, i.e., a setting wherein both the vertical and the horizontal fragmentation of a state is minimized; 2) an alliance, whereby a state becomes more vertically fragmented by creating an upper government tier devised to take advantage of economies of scale; 3) autonomy, where horizontal fragmentation is maximized, as no merging of communities occurs and no higher government tier is created. A series of simulations of the model define the conditions under which each alternative institutional arrangement emerges in equilibrium. Keywords: Institutional organization; Military goods; Vertical and horizontal fragmentation; Strategic interactions between countries (search for similar items in EconPapers) Published in Public Choice, 2018, 175 (1-2), pp.111-134. ⟨10.1007/s11127-018-0516-6⟩ There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:halshs-01717980 DOI: 10.1007/s11127-018-0516-6 Access Statistics for this paper More papers in Post-Print from HAL |
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