The stability threshold and two facets of polarization |
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| Authors: | Ori Haimanko Michel Le Breton Shlomo Weber |
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| Institution: | (1) Department of Economics, Ben-Gurion University of the Negev, Beer Sheva, 84105, Israel;(2) GREMAQ and IDEI, Manufacture des Tabacs, Université de Toulouse I, Aile Jean-Jacques Laffont 21, Alle de Brienne, Toulouse, 31000, France;(3) Department of Economics, Southern Methodist University, Dallas, TX, USA;(4) CORE, Université Catholique de Louvain, Louvain-la-Neuve, 1348, Belgium |
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| Abstract: | In this paper we introduce the 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. 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.
JEL Classification Numbers H20, D70, D73 |
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| Keywords: | Polarization Secession Stability threshold Clusters |
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