Abstract
It is shown that in an economy of identical individuals in which there are two communities with identical ex-ante features, optimal resource allocation may require to form communities of different size. This allocation cannot be supported without federal coordination, except for one special case.
Original language | English |
---|---|
Pages (from-to) | 289-293 |
Number of pages | 5 |
Journal | Economics Letters |
Volume | 1 |
Issue number | 3 |
DOIs | |
State | Published - 1978 |