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We examine the incentives of regions in a country to unite or toseparate. We find that smaller regions have greater incentives tounite, relative to larger regions. We show, however, that on thewhole, majority voting on separation and union generates excessiveincentives to separate. This leads us...
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The paper ascribes to the literature analysing the conditions leading to the break-up of nations. The model englobes the existing literature and considers two separate spaces, a state and its region, where informed and non-informed citizens cohabit. We depart in considering that noninformed...
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could ignore this trade-off and eventu-ally favour an inefficient centralised federation. The right of secession or rather … inefficient secession in two cases. It can induce opportunistic behaviour due to asymmetric information between nations …
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