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 |