The Theory of `Internal Exit', a comment on Buchanan and Faith (1987)
AbstractThe 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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Date of creation: 18 Jan 2011
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secession; public good.;
Other versions of this item:
- Grégoire ROTA-GRAZIOSI, 2006. "The Theory of `Internal Exit', a comment on Buchanan and Faith (1987)," Working Papers 200630, CERDI.
- H1 - Public Economics - - Structure and Scope of Government
- H4 - Public Economics - - Publicly Provided Goods
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-01-30 (All new papers)
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- Grégoire ROTA-GRAZIOSI, 2006.
"Economic integration and political fragmentation,"
- Grégoire Rota Graziosi, 2009.
"On the Strategic Use of Representative Democracy in International Agreements,"
Journal of Public Economic Theory,
Association for Public Economic Theory, vol. 11(2), pages 281-296, 04.
- Grégoire Rota-Graziosi, 2011. "On the strategic use of representative democracy in international agreements," Working Papers halshs-00562632, HAL.
- Grégoire ROTA-GRAZIOSI, 2006. "On the strategic use of representative democracy in international agreements," Working Papers 200624, CERDI.
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