consumers from the two countries form one market. We show that the subsidy is positive also when it fails to prevent the exit … exit is prevented, allocative and productive efficiencies are lower and the only gaining player is the rescued firm. …

' inflation aversion and exit costs. …

The vast majority of federations lack exit clauses. Existing theoretical explanations of this stylized fact focus on … that in the case of the EU, an exit-voice logic lies at the basis of Article 50. More generally, in heterogeneous (quasi …-)federations formed through voluntary accession, prospective members may require an exit right in order to join, especially if they will …