The Economics of Political Borders

Enrico Spolaore

No 3854, CESifo Working Paper Series from CESifo

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 goods 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.

Keywords: economies of scale; heterogeneity costs; conflict; size of nations (search for similar items in EconPapers)
JEL-codes: N41 (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (2)

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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:ces:ceswps:_3854

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