Abstract
State size has at least four major dimensions. Two are the number of people served by any existing state and its geographical size. These are quantitative dimensions, analogous to the output produced by the typical firm of economic theory. Two other dimensions are the level of order (G) that the state produces, which is analogous to the quality (or characteristics) of the output produced by the typical private firm,1 and the level of resources used by the state, which corresponds to the traditional firm’s revenues.2 All, of course, are determined simultaneously; nevertheless, for analytical simplicity it is useful to consider their determination separately. In this chapter we inquire into the question of the level of political concentration, or the percentage of a given society’s population which will be governed by one state. Then, in Chapter 4, we look at the resource and level of order issues, seeing if and how our conclusions in this chapter must be modified.
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Auster, R.D., Silver, M. (1979). The Sizes of States. In: The State as a Firm. Studies in Public Choice, vol 3. Springer, Dordrecht. https://doi.org/10.1007/978-94-011-7627-9_4
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