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social welfare by preventing secession wars. This finding runs counter to the dominant view in the literature that exit …
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Should the constitution of a federation allow for peaceful secession? Constitutionally defined secession rules are … benefit from the perceived long-term stability of the federation and constitutionally defined secession rules increase the …. Finally, we show that under asymmetric information it is more difficult to keep the federation together and that a secession …
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Should the constitution of a federation allow for peaceful secession? Constitutionally defined secession rules are … benefit from the perceived long-term stability of the federation and constitutionally defined secession rules increase the … secession rules. If transfers are costly, the trade off is present even if ex post renegotiation is allowed. Finally, we show …
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Historically, dissolutions of currency unions are not unusual. I use an annual panel data set covering 245 country pairs that use a common currency (of which 128 are dissolved) from 1948 through 1997 to characterize currency union exits. I find that departures from a currency union tend to occur...
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