Executive Summary

Publication date:
07/2015
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Economically, secession can be motivated by several factors that have been documented in the literature. These can range from differences in policy preferences and, more generally, heterogeneity, the variation in the efficiency of redistribution and mutual insurance, and prospects for economies of scale in public-goods provision to the inter-regional differences in taxation effort and public-finance benefits of large jurisdictions versus the costs of political heterogeneity.