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Citizens Should Vote on Secession

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Author Info

  • Eerola Essi

    ()
    (RUESG, University of Helsinki)

  • Määttänen Niku

    ()
    (The Research Institute of the Finnish Economy and CEBR)

  • Poutvaara Panu

    ()
    (Centre for Economic and Business Research (CEBR), CESifo and IZA)

Abstract

The draft treaty establishing a constitution for the European Union states that each member state may withdraw from the European Union following its own constitutional requirements. We argue that such a rule could lead into an increased use of threat of withdrawal to extract concessions in intergovernmental negotiations. This problem would be exacerbated by national electorates facing an incentive to elect more confrontational politicians. We also suggest a remedy: EU constitution should require that withdrawal from EU membership must be approved by the voters of the withdrawing member state in a referendum.

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Bibliographic Info

Article provided by De Gruyter in its journal The B.E. Journal of Economic Analysis & Policy.

Volume (Year): 4 (2004)
Issue (Month): 1 (October)
Pages: 1-22

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Handle: RePEc:bpj:bejeap:v:topics.4:y:2004:i:1:n:23

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References

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  1. Laussel, Didier, 2002. "Delegation effects in representative democracies: do they foster extremism?," Journal of Public Economics, Elsevier, vol. 85(2), pages 191-205, August.
  2. Alesina, Alberto & Spolaore, Enrico, 1997. "On the Number and Size of Nations," The Quarterly Journal of Economics, MIT Press, vol. 112(4), pages 1027-56, November.
  3. Buchanan, James M & Faith, Roger L, 1987. "Secession and the Limits of Taxation: Toward a Theory of Internal Exit," American Economic Review, American Economic Association, vol. 77(5), pages 1023-31, December.
  4. Thomas Apolte, 1997. "Secession Clauses: A Tool for the Taming of an Arising Leviathan in Brussels?," Constitutional Political Economy, Springer, vol. 8(1), pages 57-70, March.
  5. Segendorff, Bjorn, 1998. "Delegation and Threat in Bargaining," Games and Economic Behavior, Elsevier, vol. 23(2), pages 266-283, May.
  6. Dilip Abreu & David Pearce, 2003. "A Behavioral Model of Bargaining with Endogenous Types," Cowles Foundation Discussion Papers 1446, Cowles Foundation for Research in Economics, Yale University.
  7. Gradstein, Mark, 2004. "Political bargaining in a federation: Buchanan meets Coase," European Economic Review, Elsevier, vol. 48(5), pages 983-999, October.
  8. Vaubel, Roland, 1994. " The Political Economy of Centralization and the European Community," Public Choice, Springer, vol. 81(1-2), pages 151-90, October.
  9. Gradstein, Mark, 2004. "Political Bargaining in a Federation: Buchanan meets Coase," CEPR Discussion Papers 4188, C.E.P.R. Discussion Papers.
  10. Bolton, Patrick & Roland, Gerard, 1997. "The Breakup of Nations: A Political Economy Analysis," The Quarterly Journal of Economics, MIT Press, vol. 112(4), pages 1057-90, November.
  11. Fidrmuc, Jan, 1999. "Stochastic Shocks and Incentives for (Dis)Integration," CEPR Discussion Papers 2104, C.E.P.R. Discussion Papers.
  12. Bordignon, Massimo & Brusco, Sandro, 1999. "Optimal secession rules," ZEW Discussion Papers 99-51, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  13. Olivier Compte & Philippe Jehiel, 2002. "On the Role of Outside Options in Bargaining with Obstinate Parties," Econometrica, Econometric Society, vol. 70(4), pages 1477-1517, July.
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Cited by:
  1. Susanne Lechner & Renate Ohr, 2011. "The right of withdrawal in the treaty of Lisbon: a game theoretic reflection on different decision processes in the EU," European Journal of Law and Economics, Springer, vol. 32(3), pages 357-375, December.
  2. José Tavares, 2012. "Fiscal Union Consensus Design Under The Threat Of Autarky," 2012 Meeting Papers 202, Society for Economic Dynamics.
  3. Luque, Jaime & Morelli, Massimo & Tavares, José, 2011. "Fiscal Union Consensus Design under the Risk of Autarky," CEPR Discussion Papers 8552, C.E.P.R. Discussion Papers.
  4. Libman, Alexander Mikhailovich, 2009. "Эндогенные Границы И Распределение Власти В Федерациях И Международных Сообществах
    [ENDOGENOUS BOUNDARIES AND DISTRIBUTION O
    ," MPRA Paper 16473, University Library of Munich, Germany.

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