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federalism". Basic ideas and some insights of this theory are discussed with regard to the appropriate "federal" allocation of … competencies it is argued that traditional economic theories of federalism should be complemented by contract-theoretic and … transaction-cost-political approaches. There has been some progress in recent years in developing such a "new economic theory of …
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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...
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