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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. Berkowitz, Daniel, 1997. "Regional income and secession: Center-periphery relations in emerging market economies," Regional Science and Urban Economics, Elsevier, Elsevier, vol. 27(1), pages 17-45, February.
  2. Bolton, Patrick & Roland, Gerard, 1997. "The Breakup of Nations: A Political Economy Analysis," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 112(4), pages 1057-90, November.
  3. Bordignon, Massimo & Brusco, Sandro, 1999. "Optimal secession rules," ZEW Discussion Papers, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research 99-51, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  4. Bolton, Patrick & Roland, Gerard & Spolaore, Enrico, 1996. "Economic theories of the break-up and integration of nations," European Economic Review, Elsevier, Elsevier, vol. 40(3-5), pages 697-705, April.
  5. 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.
  6. Alberto Alesina & Enrico Spolaore, 1995. "On the Number and Size of Nations," NBER Working Papers 5050, National Bureau of Economic Research, Inc.
  7. Austin, D. Andrew, 1995. "Coordinated action in local public goods models: The case of secession without exclusion," Journal of Public Economics, Elsevier, Elsevier, vol. 58(2), pages 235-256, October.
  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, American Economic Association, vol. 77(5), pages 1023-31, December.
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Cited by:
  1. Grégoire Rota-Graziosi, 2011. "On the strategic use of representative democracy in international agreements," Working Papers, HAL halshs-00562632, HAL.
  2. Grégoire Rota-Graziosi, 2011. "Economic integration and political fragmentation," Working Papers, HAL halshs-00557242, HAL.

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