Working Papers in Economics,
University of Gothenburg, Department of Economics

Abstract: This paper examines the economic and political conditions that influence people’s attitudes regarding a municipality break-up. The theoretical model predicts intra-municipal differences in tax bases, political preferences, and population size to affect the expected gain from secession. The predictions of the model are tested using data on local referenda about municipality partitioning in Sweden. The data support one of the three effects; voters in municipality parts that are wealthy compared to other parts of the same municipality are more positive to secession.

Keywords: median voter; municipalities; referenda; break-up

JEL-codes: H11; H73

24 pages, First version: November 14, 2001. Revised: September 5, 2003.

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