Lecturer: Prof. Shlomo
In the last few years the world map and
national borders have been redrawn quite dramatically. This process of
probably far from over as a large number of secessionist movements mushroom across the globe. In this course we will
attempt to analyze economical and political reasons that prompt heterogeneous regions or provinces to be apart or together.
We will examine the effect of heterogeneity and polarization of citizens’ characteristics or preferences on country redistribution
policies. We will also evaluate the impact that a threat of secession by some regions may have on the income distribution and
transfers from the central government to the regions. First, we will deal with a theoretical part and then will turn our attention to
an empirical analysis of various countries.
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the Number and Size of Nations", Quarterly Journal of Economics 113,
Alesina, A. and E. Spolaore (2003), The MIT Press.
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Constitutional and Contractual Analysis of Federations
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Income Distribution and a Threat of Secession
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Conflicts, Factor Mobility, and Political Integration", American Economic
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Olofsgard, A. (1999), "Secessions and Nationalism
in a Model with Size Externalities and Imperfect Mobility", Mimeo,
Institute for International Economic Studies, Stockholm.
Persson, T. and G. Tabellini (1999), "Political Economics and Public Finance", Mimeo, Bocconi University.
Fiscal Decentralization, Threat of Secession and Redistributive Policies
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Haimanko, O., Le Breton, M,
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Efficiency and Stability" Journal of Public Economics, 89, 1277-1303.
Le Breton, M. and S. Weber (2003), "The
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