Applied mathematical theory of governance : impact of group size to governance
- This paper analyzes governance mechanisms for different group sizes. The European sovereign debt crisis has demonstrated the need of efficient governance for different group sizes. I find that self-governance only works for sufficiently homogenous and small neighbourhoods. Second, as long as the union expands, the effect of credible self-governance decreases. Third, spill-over effects amplify the size effect. Fourth, I show that sufficiently large monetary unions, are better off with costly but external governance or a free market mechanism. Finally, intermediate-size unions are most difficult to govern efficiently.
| Author of HS Reutlingen | Herzog, Bodo |
|---|---|
| URN: | urn:nbn:de:bsz:rt2-opus4-4875 |
| URL: | http://www.scienpress.com/Upload/TMA/Vol%205_2_4.pdf |
| ISSN: | 1792-9687 |
| eISSN: | 1792-9709 |
| Erschienen in: | Theoretical mathematics and applications |
| Publisher: | International Scientific Press |
| Place of publication: | London |
| Document Type: | Journal article |
| Language: | English |
| Publication year: | 2015 |
| Tag: | economic governance; european monetary union; group size |
| Volume: | 5 |
| Issue: | 2 |
| Page Number: | 17 |
| First Page: | 71 |
| Last Page: | 87 |
| DDC classes: | 510 Mathematik |
| Open access?: | Ja |
| Licence (German): |  Creative Commons - Namensnennung |
