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Europe as an optimal political area: New findings

Alesina, Alberto, Tabellini, Guido, Trebbi, Francesco, (2017), “Europe as an optimal political area: New findings”, Vox Eu, 2 June

In the economic analysis of secession and integration, the answer to this question reflects a trade-off between the benefits of economies of scale and scope in the provision of global public goods on the one side, and the cost due to heterogeneity of preferences on the other (Alesina and Spolaore 1997). The first element of this trade-off – benefits from economies of scale and scope – is probably there at least in some policy areas. Among experts, there is a shared belief that areas of government intervention such as defence, foreign policy, and immigration policies would benefit from greater integration between European countries.

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