HAIMANKO, Ori; LE BRETON, Michel; WEBER, Shlomo - Center for Operations Research and Econometrics (CORE), … - 2002
We consider a political economy model of country whose citizens have heterogeneous preferences for a national policy and some regions may contemplate a threat of secession. The country is efficient if its break-up into smaller countries leads to aggregate utility loss. We show that in an...