This paper studies to what extent it is possible to discriminate between two municipality parts by unequal public service provision when there is a threat of secession. The objective of the local politicians is to maximize utility for only one part of a municipality. The discriminated part is...

Swedish municipality parts aiming for secession are highly dependent on the municipal council's acceptance in order to succeed. Only four of the 25 municipality break-up verdicts passed by the central government have not been in line with the municipal council's recommendation. In nearly all...