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The Theory of `Internal Exit', a comment on Buchanan and Faith (1987)

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  • Grégoire ROTA-GRAZIOSI

    ()
    (Centre d'Etudes et de Recherches sur le Développement International)

Abstract

The purpose of this note is to correct an error in the seminal article on secession by Buchanan and Faith (1987). In their paper, Buchanan and Faith neglected an important effect: political separation affects markets and consequently individual private incomes.

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File URL: http://publi.cerdi.org/ed/2006/2006.30.pdf
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Bibliographic Info

Paper provided by CERDI in its series Working Papers with number 200630.

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Length: 9
Date of creation: 2006
Date of revision:
Handle: RePEc:cdi:wpaper:843

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Keywords: secession; public good.;

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References

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  1. Bolton, Patrick & Roland, Gerard & Spolaore, Enrico, 1996. "Economic theories of the break-up and integration of nations," European Economic Review, Elsevier, vol. 40(3-5), pages 697-705, April.
  2. Bordignon, Massimo & Brusco, Sandro, 1999. "Optimal secession rules," ZEW Discussion Papers 99-51, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  3. Jehiel, Philippe & Scotchmer, Suzanne, 2001. "Constitutional Rules of Exclusion in Jurisdiction Formation," Review of Economic Studies, Wiley Blackwell, Wiley Blackwell, vol. 68(2), pages 393-413, April.
  4. Berkowitz, Daniel, 1997. "Regional income and secession: Center-periphery relations in emerging market economies," Regional Science and Urban Economics, Elsevier, vol. 27(1), pages 17-45, February.
  5. Alesina, Alberto & Spolaore, Enrico, 1997. "On the Number and Size of Nations," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 112(4), pages 1027-56, November.
  6. Austin, D. Andrew, 1995. "Coordinated action in local public goods models: The case of secession without exclusion," Journal of Public Economics, Elsevier, vol. 58(2), pages 235-256, October.
  7. Bolton, Patrick & Roland, Gérard, 1995. "The Break up of Nations: A Political Economy Analysis," CEPR Discussion Papers, C.E.P.R. Discussion Papers 1225, C.E.P.R. Discussion Papers.
  8. 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.
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Cited by:
  1. Grégoire Rota-Graziosi, 2011. "Economic integration and political fragmentation," Working Papers halshs-00557242, HAL.
  2. Grégoire Rota-Graziosi, 2011. "On the strategic use of representative democracy in international agreements," Working Papers halshs-00562632, HAL.

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