Integration of Asymmetric Nations
We examine the incentives for integration between two nations of different sizes in a set-up similar to that used by: individuals are indexed by location, each nation (comprising of individuals) is an interval, and the public good in each nation is provided from its capital located in the middle of the nation. We analyse integration where each country gives up its sovereignty and there is a joint decision about the location of the new nation's capital. We find that integration occurs if the...[Show more]
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|Source:||The Economic Record|
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