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PUBLIC GOODS AND THE DISSOLUTION OF STATES
Author(s) -
Ellis Christopher,
Friedrich Silke
Publication year - 2017
Publication title -
bulletin of economic research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.227
H-Index - 29
eISSN - 1467-8586
pISSN - 0307-3378
DOI - 10.1111/boer.12065
Subject(s) - politics , economics , state (computer science) , public good , federalism , dissolution , face (sociological concept) , economic system , public economics , neoclassical economics , political economy , political science , sociology , law , social science , chemistry , algorithm , computer science
We present a simple model of the dissolution of states. We combine elements of the literature on the break‐up and integration of states based on models in the fiscal federalism tradition, with elements of the literature that explains the determination of a state's political institutions as a means to credibly promise redistributions in the face of costly, perhaps violent, redistributive conflict. We are able to characterize when the equilibrium involves the dissolution of a country, and when it involves continued unity. We are also able to explore some aspects of the linkages between political institutions and the determination of national boundaries.