Journal of Political Economy Vol. 85 No. 1 1977
A Theory of the Size and Shape of Nations
Abstract
If territory goes to the nation which values it most as a source of revenue, nations will be shaped to maximize joint revenue, net of collection costs. Trade, as a major potential revenue source, should imply large nations; rent should imply small nations; and labor should imply that nations will have closed boundaries or be culturally homogeneous (to maximize exit costs). I show how this fits the pattern of European experience from Roman times to the present. Results of preliminary numerical tests of predictions of the theory are given.
- Volume
- 85
- Issue
- 1
- Pages
- 59-77
- Sources
- bibtex:phds-export.bib