security of a block cipher mode of operation Consider the following block cipher mode of operation:
\begin{align}
tag_0 &amp;= mac\:key\\
plaintext_0' &amp;= plaintext_0 \oplus iv\\
E(tag_0 | plaintext_0') = C_0 &amp;= tag_1 | ciphertext_0\\
E(tag_1 | plaintext_1) = C_1 &amp;= tag_2 | ciphertext_1\\
...\\
E(tag_N | plaintext_N) = C_N &amp;= tag_{N+1} | ciphertext_N\\
cryptogram &amp;= tag_{N+1} | ciphertext_0, ciphertext_1, ... ciphertext_N, iv\\
D(tag_N + 1 | ciphertext_N) &amp;= P_N = tag_N | plaintext_N\\
D(tag_N | ciphertext_{N-1}) &amp;= P_{N-1} = tag_{N-1} | plaintext_{N-1}\\
...\\
D(tag_1 | ciphertext_0) &amp;= P_N = tag_0 | (plaintext_0 \oplus iv)\\
\end{align}
$tag_0$ is then validated against the mac key.

An explicit description, which demonstrates using a 128 bit block cipher (i.e AES) and 64 bit tag:


the the first block of a message that is encrypted consists of a mac key,
denoted as $tag_0$, concatenated with the first 64 bits of plaintext
$plaintext_0$ is xor'd with an IV
the block $(tag_0 | plaintext_0)$ is encrypted
the first 64 bits of $ciphertext_0$ are used as $tag_1$ for encrypting $plaintext_1$,
this is repeated for the entire message
The cryptogram consists of the final tag prepended to the ciphertext, and the iv
Decryption is the same process with the messages in reverse order, and 
the tag validated against the mac key at the end.


Does the described mode of operation provide integrity and authentication of the plaintext?

Assuming so:


Does it have a name already/is there any established research?
What is the minimum acceptable value for the tag size? My guess is 64 bits.
Too much larger would seem to preclude usefulness with ciphers that have a
block size of &lt;= 128 bits.
With a 128 bit block cipher, performance is 2 two block cipher operations
per 128 bit block of plaintext, which could be better 
The number of block cipher operations would appear to become more
efficient with a larger blocksize + longer messages?


The ratio of required block cipher operations per block of plaintext appears
to be given by: \begin{align}blocksize / (blocksize - tag\:size)\\
\end{align}



Edit

Astute commentators have pointed out the construction is similar to the way a
sponge provides authentication. This is certainly not a coincidence! I have 
been studying the sponge construct for a while. The tag in the mode of 
operation described here fulfills a conceptually similar role as the capacity
of a sponge function does.
No, this mode as listed does not provide integrity of the decrypted plaintext.

An active attacker can flip arbitrary bits from the first 64 bits of the decrypted plaintext freely without causing a decryption failure.  He can do this by modifying the $iv$; the decrypted $tag_0$ will authenticate (because the $iv$ is not used to compute that), and then the decryption process will apply the modified $iv$ to the decrypted $plaintext_0$