Incentives for separation and incentives for public good provision

• In this paper, I examine how the incentives of regions to unite and to separate are related to the incentives to provide public goods. Separation allows for greater influence over the nature of political decision making while unification allows regions to exploit economies of scale in the provision of public goods. From a social welfare perspective, there are excessive incentives for separation and for the provision of public goods. When incentives for public good provision are not taken into account, however, these incentives can be misinterpreted as incentives for separation.

Ämnesord

SAMHÄLLSVETENSKAP  -- Ekonomi och näringsliv -- Nationalekonomi (hsv//swe)

SOCIAL SCIENCES  -- Economics and Business -- Economics (hsv//eng)

Nyckelord

Unification; Separation; Public good provision; Voting

Economics

Nationalekonomi

Publikations- och innehållstyp

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