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The Birth, Adjustment and Death of States

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Author Info
Kjell Hausken (School of Economics, Culture, Social Sciences, University of Stavanger)
John F. Knutsen (Knutsen & Didriksen as)

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Abstract

The article proposes Erection, Adjustment, and Death mechanisms for governmental units, giving autonomy to each citizen as in a direct democracy. Rather than focusing on a narrow model with restrictive and specialized assumptions, and subsequent solutions, as has been common in the literature, the article takes citizens seriously acknowledging that they are best equipped to find their own solutions. The emphasis is on the practical approach of how citizens discover and implement their subjective preferences. Governmental units are subjected to some of the same market forces as ordinary firms, in the spirit of Coase (1988). This brings the interaction between governmental units closer to a market structure, and serves to eliminate or reduce many of the coercive elements of government.

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File URL: http://129.3.20.41/eps/pe/papers/0205/0205004.pdf
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Publisher Info
Paper provided by EconWPA in its series Public Economics with number 0205004.

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Length: 20 pages
Date of creation: 15 May 2002
Date of revision:
Handle: RePEc:wpa:wuwppe:0205004

Note: Type of Document - pdf; prepared on pc; to print on PostScript; pages: 20
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Web page: http://129.3.20.41

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Related research
Keywords: Territorial units; individual liberty; individual decision making; individual welfare; competitive markets; public choice; constitutional economics; political economy;

Find related papers by JEL classification:
H4 - Public Economics - - Publicly Provided Goods
H5 - Public Economics - - National Government Expenditures and Related Policies
H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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    Other versions:
  2. 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.
    Other versions:
  3. Caplan, Bryan, 2001. " Standing Tiebout on His Head: Tax Capitalization and the Monopoly Power of Local Governments," Public Choice, Springer, vol. 108(1-2), pages 101-22, July. [Downloadable!] (restricted)
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    Other versions:
  6. 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. [Downloadable!] (restricted)
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    Other versions:
  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. [Downloadable!] (restricted)
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    Other versions:
  10. Wellisch, Dietmar, 1994. "Interregional spillovers in the presence of perfect and imperfect household mobility," Journal of Public Economics, Elsevier, vol. 55(2), pages 167-184, October. [Downloadable!] (restricted)
  11. Posner, Richard A, 1975. "The Social Costs of Monopoly and Regulation," Journal of Political Economy, University of Chicago Press, vol. 83(4), pages 807-27, August. [Downloadable!] (restricted)
  12. Friedman, David, 1977. "A Theory of the Size and Shape of Nations," Journal of Political Economy, University of Chicago Press, vol. 85(1), pages 59-77, February. [Downloadable!] (restricted)
  13. Krueger, Anne O, 1974. "The Political Economy of the Rent-Seeking Society," American Economic Review, American Economic Association, vol. 64(3), pages 291-303, June. [Downloadable!] (restricted)
  14. Casella, Alessandra, 2001. "The Role of Market Size in the Formation of Jurisdictions," Review of Economic Studies, Blackwell Publishing, vol. 68(1), pages 83-108, January.
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  15. Hausken, Kjell, 2000. "Migration and intergroup conflict," Economics Letters, Elsevier, vol. 69(3), pages 327-331, December. [Downloadable!] (restricted)
  16. Bordignon, Massimo & Brusco, Sandro, 2001. "Optimal secession rules," European Economic Review, Elsevier, vol. 45(10), pages 1811-1834, December. [Downloadable!] (restricted)
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Cited by:
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  1. Kjell Hausken & John F. Knutsen, 2004. "An Enabling Mechanism for the Creation, Adjustment, and Dissolution of States and Governmental Units," Public Economics 0409011, EconWPA. [Downloadable!]
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