Constitutional Rules of Exclusion in Jurisdiction Formation
Data
01.01.1998
01.01.1998
Autori
Philippe Jehiel, Suzanne Scotchmer
Publisher
Economy and Society
Economy and Society
Editor
Fausto Panunzi
Fausto Panunzi
The rules under which jurisdictions (nations, provinces) can deny immigration or expel residents are generally governed by a constitution, but there do not exist either positive or normative analyses to suggest what types of exclusion rules are best. We stylise this problem by suggesting four constitutional rules of admission: free mobility, admission by majority vote, admission by unanimous consent, admission by a demand threshold for public goods. In a simple model we characterise the equilibria that result from these rules, and provide a positive theory for which constitutional rule will be chosen.