Theory of Non-Territorial Internal Exit

50 Pages Posted: 17 Sep 2015

See all articles by Trent MacDonald

Trent MacDonald

RMIT University, Faculty of Business, School of Economics, Finance and Marketing, Students

Date Written: February 1, 2015

Abstract

This paper presents a model of partial internal exit that captures the competitive dynamic between incumbent and potential governments in a non-territorial political system. This model particularly applies to the case of ‘cryptosecession’ that appears the most likely avenue for non-territorial decentralisation to ever eventuate. It demonstrates how fiscal exploitation is reduced and eventually eliminated as the capability of citizens to move to non-territorial jurisdictions increases. When interpreted as a model of cryptosecession, it shows how the balance of citizen opacity and government legibility determines the balance of fiscal exploitation versus equivalence.

Keywords: Non-territorial, jurisdiction, secession, internal exit, cryptoanarchy

JEL Classification: H00, H11, P43, D00

Suggested Citation

MacDonald, Trent, Theory of Non-Territorial Internal Exit (February 1, 2015). Available at SSRN: https://ssrn.com/abstract=2661226 or http://dx.doi.org/10.2139/ssrn.2661226

Trent MacDonald (Contact Author)

RMIT University, Faculty of Business, School of Economics, Finance and Marketing, Students ( email )

Level 12, 239 Bourke Street
Melbourne, Victoria
Australia

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