countries is self-enforcing. It is shown that there always exists a rather small stable tax coalition. For some subset of the … parameter space the grand coalition may be stable as well, even if the total number of countries is large. The small stable … coalition is not very effective in mitigating the inefficiency of the non-cooperative Nash equilibrium. The ineffectiveness is …

game approach of the endogenous coalition formation literature. The specific policy recommendations in the EMU context …

if a large enough political coalition supports reform; thus, sustainable policies are those that will continue to attract …