Segregation, polarization and the protection of minorities : national versus regional policy

Abstract

We analyse the optimal level of political decision making, national or regional. The benefit of policy making at the regional level is that it allows for policy differentiation, which serves the interests of regional majorities. The argument in favor of a national policy is that it may generate a more moderate policy, which protects the interests of regional minorities. Our paper analyses how the degree of geographical segregation and the degree of polarization of preferences affect the trade-off between these two concerns.