Discussion paper

DP9040 Who Needs the Nation State?

The design of institutions is shaped by a fundamental trade-off. On the one hand, relationships and heterogeneity push governance down. On the other, the scale and scope benefits of market integration push governance up. A corner solution is rarely optimal. An intermediate outcome, a world divided into diverse polities, is the best that we can do.

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Citation

Rodrik, D (2012), ‘DP9040 Who Needs the Nation State?‘, CEPR Discussion Paper No. 9040. CEPR Press, Paris & London. https://cepr.org/publications/dp9040