A Linear Model of Geopolitics

TL;DR

This paper introduces a linear general-equilibrium model where trade and borders are endogenously determined, providing insights into geopolitical outcomes and their implications for political economy, security, and ideology.

Contribution

It presents a novel, unified framework that endogenizes trade and borders, enabling analysis of their interaction and effects on geopolitics.

Findings

Geopolitical outcomes depend on the endogenous interaction of trade and borders.

The model explains phenomena not captured by exogenous assumptions.

Applications include insights into security and ideological conflicts.

Abstract

Geopolitics is shaped by trade and borders. We develop a general-equilibrium model in which both are endogenously determined in a linear world. Their interaction rationalizes geopolitical outcomes that cannot be obtained when either trade or borders are treated as exogenous. This unified and tractable framework is used to study political economy, security, and ideology within and across states.