Formation of Nations in a Welfare State Minded World

We model the endogenous formation of nations in a world economy where nations apply redistributive policies. We show that stronger distributive 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.

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Year of publication:	1995
Authors:	Dagan, Nir ; Volij, Oscar
Institutions:	Oscar Volij

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Extent:	application/pdf
Series:	Economic theory and game theory.
Type of publication:	Book / Working Paper
Language:	English
Notes:	Published in Journal of Public Economic Theory 2:157-181 (2000) 20 pages
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005146800