The Economics of Political Borders

Enrico Spolaore

No 767, Discussion Papers Series, Department of Economics, Tufts University from Department of Economics, Tufts University

Abstract: This paper presents concepts from economic analysis that shed light on the formation and breakup of sovereign states. First, we discuss the key trade-off between economies of scale in the provision of public good and political costs from heterogeneity of preferences. Second, we present four economic perspectives on the formation of borders: efficient borders, borders as democratic outcomes, borders in a world of rent-seeking Leviathans, and borders as outcomes of conflict and wars. Finally, we provide an analytical illustration of the basic ideas within a simple framework.

Date: 2012
New Economics Papers: this item is included in nep-cdm and nep-pol
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Related works:
Chapter: The economics of political borders (2016)
Working Paper: The Economics of Political Borders (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:tuf:tuftec:0767

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