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Citizens Should Vote on Secession

  • 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)

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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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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  1. Vaubel, Roland, 1994. "The Political Economy of Centralization and the European Community," Public Choice, Springer, vol. 81(1-2), pages 151-90, October.
  2. Segendorff, Bjorn, 1998. "Delegation and Threat in Bargaining," Games and Economic Behavior, Elsevier, vol. 23(2), pages 266-283, May.
  3. Gradstein, Mark, 2004. "Political Bargaining in a Federation: Buchanan meets Coase," CEPR Discussion Papers 4188, C.E.P.R. Discussion Papers.
  4. Laussel, Didier, 2002. "Delegation effects in representative democracies: do they foster extremism?," Journal of Public Economics, Elsevier, vol. 85(2), pages 191-205, August.
  5. Gradstein, Mark, 2004. "Political bargaining in a federation: Buchanan meets Coase," European Economic Review, Elsevier, vol. 48(5), pages 983-999, October.
  6. Fidrmuc, Jan, 1999. "Stochastic Shocks and Incentives for (Dis)Integration," CEPR Discussion Papers 2104, C.E.P.R. Discussion Papers.
  7. 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.
  8. Patrick Bolton & Gérard Roland, 1997. "The Breakup of Nations: A Political Economy Analysis," The Quarterly Journal of Economics, Oxford University Press, vol. 112(4), pages 1057-1090.
  9. 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.
  10. Alberto Alesina & Enrico Spolaore, 1997. "On the Number and Size of Nations," The Quarterly Journal of Economics, Oxford University Press, vol. 112(4), pages 1027-1056.
  11. 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.
  12. Bordignon, Massimo & Brusco, Sandro, 2001. "Optimal secession rules," European Economic Review, Elsevier, vol. 45(10), pages 1811-1834, December.
  13. 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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