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The stability threshold and two facets of polarization

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  • HAIMANKO, Ori
  • LE BRETON, Michel
  • WEBER, Shlomo

Abstract

In this paper we introduce the notion of stability threshold that quantifies the minimal returns to size sufficient to prevent credible secession threats by regions of the country. Severity of internal tension has been linked to degree of polarization of citizens' preferences and characteristics. We show that the increasing degree of polarization does not, in general, raise the stability threshold, even though this hypothesis holds in some asymptotic sense. Thus, somewhat counter-intuitively, the relation between polarization and the stability threshold is ambiguous. We also examine the question of the number of smaller countries to be created if the unity of the large country is not sustainable, and investigate the link between this number and the degree of the country polarization. We find that the stable number of countries also behaves non-monotonically with respect to polarization indices. However, monotonicity does emerge when the stable number is large, and the stable number decreases when polarization rises.
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Suggested Citation

  • HAIMANKO, Ori & LE BRETON, Michel & WEBER, Shlomo, 2007. "The stability threshold and two facets of polarization," LIDAM Reprints CORE 1930, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    • Handle: RePEc:cor:louvrp:1930
    DOI: 10.1007/s00199-005-0069-z
    Note: In : Economic Theory, 30, 415-430, 2007
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    References listed on IDEAS

    as
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    Citations

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    Cited by:

    1. Rodríguez-Pose, Andrés & Stermšek, Marko, 2014. "The Economics of Secession ? Analysing the economic impact of the collapse of the former Yugoslavia," CEPR Discussion Papers 10134, C.E.P.R. Discussion Papers.
    2. Roy, Sunanda & Wu, Kuan Chuen & Chandra, Abhijit, 2015. "Uncovering the "Will of the People": Measuring Preference Polarization among Voters," Staff General Research Papers Archive 38358, Iowa State University, Department of Economics.
    3. Vincent Anesi & Philippe De Donder, 2013. "Voting under the threat of secession: accommodation versus repression," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 41(2), pages 241-261, July.
    4. Yaron Azrieli & Dan Levin, 2020. "Stable unions," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 69(2), pages 337-365, March.
    5. Vincent Anesi & Philippe De Donder, 2011. "Voting under the Threat of Secession: Accommodation vs. Repression," CESifo Working Paper Series 3458, CESifo Group Munich.
    6. Matthias Dahm, 2010. "Free mobility and taste-homogeneity of jurisdiction structures," International Journal of Game Theory, Springer;Game Theory Society, vol. 39(1), pages 259-272, March.
    7. Hudson Meadwell, 2011. "Spatial models of secession-proofness and equilibrium size," Quality & Quantity: International Journal of Methodology, Springer, vol. 45(3), pages 641-652, April.
    8. Vincent Anesi & Philippe De Donder, 2011. "Voting under the Threat of Secession: Accommodation vs. Repression," CESifo Working Paper Series 3458, CESifo.

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    More about this item

    JEL classification:

    • D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General
    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General

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