This paper presents a model of nation formation in which culturally heterogeneous agents vote on the optimal level of public spending. Larger nations benefit from increasing returns in the provision of public goods, but bear the costs of greater cultural heterogeneity. This tradeoff induces...

This collection of short essays proceeds from an international conference organized by DIIS on 9th November 2009, the day of the twentieth anniversary of the fall of the Berlin Wall. The volume centers on the political, social, and economic implications of the revolutions of 1989 on European...