Bordignon, Massimo; Brusco, Sandro - Zentrum für Europäische Wirtschaftsforschung (ZEW) - 1999
Should the constitution of a federation allow for peaceful secession? Constitutionally defined secession rules are optimal ex post if the federation breaks down. However, they may be suboptimal ex ante if the member countries receive a benefit from the perceived long-term stability of the...