Segregation, radicalization and the protection of minorities: National versus regional policy

We analyse the optimal level of political decision making, national or regional, in a society where people hold different views on public policy. 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 analysis how the degree of segregation and the degree radicalization of preferences affect the trade-off between these two concerns.