Formation of Nations in a Welfare-State Minded World

Oscar Volij () and Nir Dagan ()

Staff General Research Papers Archive from Iowa State University, Department of Economics

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: 2000-01-01
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Published in Journal of Public Economic Theory 2000, vol. 2, pp. 157-181

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Related works:
Journal Article: 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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Persistent link: https://EconPapers.repec.org/RePEc:isu:genres:5201

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