Cryptosecession as Non-Territorial Exit from State-Based Taxation

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* Article / lecture: Cryptosecession and the limits of taxation: Towards a theory of non-territorial internal exit. By Trent J. MacDonald & Jason Potts. PUBLIC CHOICE SOCIETY CONFERENCE, March 2016



"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." (