Abstract
We model the endogenous formation of nations in a world economy where nations apply redistributive policies. We show that people's preference for stronger redistributive 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.
Original language | English |
---|---|
Pages (from-to) | 157-181 |
Number of pages | 25 |
Journal | Journal of Public Economic Theory |
Volume | 2 |
Issue number | 2 |
DOIs | |
State | Published - 1 Dec 2000 |
Externally published | Yes |
ASJC Scopus subject areas
- Sociology and Political Science
- Finance
- Economics and Econometrics