Index
access rules 94 opportunities 79 accommodation 180 polity-economy from 132–3 Acemoglu, D. 83, 136 strategic 76 advocacy campaigns, viral enthusiasm subjective valuations into 133 for 16 Bauer, Otto 5, 56–7 advocacy groups 31 Belgium agglomeration 153 dual federalism 5–6, 57–8 economies in 148, 150, 153–7, 176, political schisms of 40 179, 189 regions of 57 efficiencies of 19–20, 34, 121 Bitcoin 5, 64–9, 144, 190 markets and 123 Bitnation 42, 63, 66–7, 150, 178 Alesina, A. 88 blockchain 64–9, 190 algebraic analysis 29, 37 cryptosecession 10 allocative efficiency 34–5, 144, 147, decentralised 67 156 governance 67–8 anarchism 42 Bodin, Jean 1 cyber-spatial realisation of 62 Boettke, P. J. 120 market 40 Bolton, P. 88 panarchism from 41 boundary change 186–8 anarcho-capitalism 40 boundary mobility 185–9 Anarchy, State, and Utopia (Nozick) boundary rules 97 46 Braude, Benjamin 54 Andersson, D. E. 184–6, 188 Buchanan, J. M. 21, 30, 34, 43–4, 48, Assange, Julian 144 77–80, 89–90, 94, 143, 146–8, Austro-Hungarian Empire 56–7 150–51, 165, 174, 179–80 Austro-Hungary non-territorial Buchanan–Wicksellian constitutional federalism 201 stage test 68 authority rights 109 bundling 29, 200 allocation of 109, 111, 136, 142 governance 3, 23 autonomy 59 Byzantine Generals Problem 65 degree of 54 individual 59 Calabresi, G. 76–7 legal 54 cartography 1–2 national-cultural 16, 45, 59, 78, 195 cattle farmer bargains 109–10 national personal 73 Cheung, S. N. 75 choice bargain/bargaining 75, 85–6, 110, 112, community of 87 187 complexity of 28–31 cattle farmer 109–10 criterion of 79 Coasean 77, 108 for groups and individuals 22 latent state 111–12 institutional 138
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personal 56 conscription, functions of 159 political 14–16, 18, 182 constitutional permissibility of between property rules 77 jurisdictional change 130, 149 public 41 consumer sovereignty 30 strategy 166 contractarianism 42–3 of two community governments 6 contractarian justification 4, 42 Churchill, Winston 14, 33–4 contracting transaction costs (CTCs) citizens, capability of 10 12, 113, 119, 121 classical contractarianism 43 controlled migration 12, 183, 193 classical contractarian political theory conventional property rights 72 42 Cooter, R. D. 79 Coasean bargaining 108, 112–14 cosmopolitan culture 2 Coasean dictum 109 countervailence theory 53 Coasean efficiency concept 179 Coyne, Christopher 183, 193 Coasean political exchange 7–8, 71, cross-border trade restrictions 122 78, 84–5, 106, 113, 115–16, 118, cryptoanarchism 62, 190 142, 202 theory and practice of 66 Coasean trade 86 cryptoanarchist technologies 190 Coase theorem 70, 73–8, 118, 201 cryptoanarchist virtual states 69 jurisdictional 84–90 cryptoanarchy 62 political and jurisdictional promises of 180 interpretations of 113 as secession and statecraft 62–4 in politics 83 spectre of 199–200 positive conclusions of 76 theory and practice of 6, 62 collective action 32, 61–2, 71, 73, 81, cryptocurrency 64–5 83, 85, 130, 148–9, 188 growth of 63 equalises costs of 130 cryptoeconomy 63–4, 66–7, 157–9 collective goods 14–15, 22, 26–7, 61 institutional structure of 67 allocation of 20 persistence of 179 benefits of 24 self-sufficient 63 consumption of 25 simultaneous operation of 63 provision of 91 cryptographic exit signals 63 self-managing 30 cryptographic technology 41, 60, 62–6, and services 23 69, 149, 190 collective productive services 90 cryptography 60 common identity, concepts of 191 growth of 11 commons property 96 internal exit 177–8 communal units 59 Internet and 68 comparative historical analysis 120 veil of 63 comparative institutional analyses 28, crypto infrastructure 157–8 36, 75–6, 122, 201 cryptoseceder pays tax 157, 160 comparative social costs 119, 142 cryptosecession 10, 64, 148–9, 156–74, competitive federalism 16–17, 19 179, 194, 203 competitive governance 16, 53, 86 blockchain-based 10 mechanism and theories of 16 bouts of 180 medieval polycentric system of 53 coefficient 178–9 model of 182 defined 63–4 theme of 17 impacts 161 competitive political sorting 149 internal exit model 159–64 complexity of choice 28–31 model of 158
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non-territorial 150, 174–80 de facto territoriality 57–8 option of 162 de jure allocation of property rights as partial internal exit 156–9 126 permissionless 149 de jure polities 161 prevalence of 179 de jure property rights process of 158 allocations 104, 106–7 proof equilibrium 179–80 relations 103, 105 technologies of 11, 203–4 demic order 199 threat of 174, 176 democracy cryptosecession game 10, 164–74 classification of 184–5 backward induction solution of diZerega’s theory of 184 174–5 majoritarian dimension of 14 extensive-form representation of as spontaneous order 184 167 democratic decision-making 186 Nash equilibrium solution of 166 democratic politics 186 outcome of 176 de Molinari, Gustave 4, 39–40, 201 cryptosecessionist internal exit 144 Demsetz, H. M. 74–6 cryptosecession-proof tax rate 159, de Puydt, Paul Emile 4, 40, 201 163–5, 168–9, 171–3 discriminatory fiscal transfers 145 cryptostatecraft 64 distributional conflicts 113 crypto technologies 11, 63, 162–3, distributive efficiency 35 179–80 diversity, proposed non-territorial information and diffusion of 180 responses to 191 CTCs see contracting transaction costs diZerega, G. 184, 186, 188, 194 (CTCs) Djankov, S. E. 119–21, 124, 126, cultural self-determination 45 128 Czechoslovakia dominant assurance contract 61–2 institutions in 46 dual federalism 5–6 parallel states in 46 quasi-panarchistic form of 40 dual-system 2 DAOs see decentralised autonomous Duncan, T. 183, 193 organisations (DAOs) Dark Wallet 66 economic decision-making 143 decentralisation 17, 19, 21, 24, 26, 34, economic possibility frontier 135 48 economic preferences 3, 17–18 benefits of 15 economic theory 1–2 blockchains 67 economy, fiscal capacity of 7 bundling problem and 23 efficiency hypothesis 78 jurisdiction 17 Eichenberger, Reiner 5, 48–50 non-territorial 20–21 Ellerman, David 27 principle virtues of 23 entitlements decentralised autonomous allocation of 136 organisations (DAOs) 66 optimal allocation of 142 decision-making process 188 equilibrium fiscal surplus 153 decoupling political jurisdiction 3 equilibrium secession-proof 159 de facto allocations 80 tax rate 152–4 de facto cryptosecession 157 Ethereum 66, 178 de facto property ethnic cleansing 203 relations 98 ethnocentrism 142 rights 7, 107 ethno-political conflicts 59
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European Union 2 FOCJs see functional overlapping existing jurisdictional orders 199 competing jurisdictions exit (FOCJs) cryptosecessionist internal 144 framework for utopia 4 external 147 Franklin, Benjamin 14 internal see internal exit free jurisdictional system 203 model 159–64 free market system 203 non-territorial 11 free-riding 61 opportunity costs of 188–9 Frey, Bruno 5, 23, 48–50, 89 partial 190 Friedman, David 88 signals 63 Friedman, Patri 36 experimentation 6, 18–19, 25, 27–8, 30, functional federalism 23, 49 33–4, 43, 69 functional governance units 59 with bundling 4 functional overlapping competing framework for 19 jurisdictions (FOCJs) 5, 48–50, external exit 146, 148–9 78, 90 role of 147 externalities 74 genuine entrepreneurship 29 diversity of 23 ghettoisation 197 interconnected 77 global capitalism 2 Pareto-relevant 74 globalisation 2 presence of 73–4 governance 14, 96, 128–9 spillover 26–7 anarchistic conception of 40 centralised system of 27 failures 7, 12, 18, 73, 82, 87, 121–2, competition and innovation in 19 171, 183, 196, 199, 203 competitive 16, 53 Faith, Roger L. 89, 144, 146–8, 150–51, concept of 1 165, 174, 180 contestable markets for 53 farming properties 109 ‘defence’/’protection’ function of federalism 17, 19, 21, 33, 49, 73, 78, 51–2 84, 86, 89, 99, 182, 184, 197, definition of 15 201 distinct function of 23 competitive 16 efficient system of 28 dual 5–6, 57–8 form of 33–4, 39 economic theory of 50 functions of 2, 6, 31–2, 37, 52, 56–7, functional 23 59 market-preserving 84 markets 86 non-territorial 51, 56–7, 59 models of 197 traditional 59 modes of 33–4 federal majoritarian system 17 multi-level 16, 201 fiscal budgetary process 96 non-territorial 5, 15, 58, 196 fiscal commons 7, 91–6, 200–201 optimal architecture of 30 fiscal equivalence 24, 146 parallel 16 fiscal exploitation 146–7, 151, 161–3, ‘para-territorial’ system of 51 174, 180 providers 20 internal exit and 147–50 regionalisation and decentralisation fiscal redistribution 144–5 of 60–61 fiscal surplus 151–2, 156, 159–60 system of 15, 51, 200 fiscal transfers 150 territorial 1, 57, 196 Flemish nationalism 40 unbundling of 3–4, 16, 25, 29–30, 59
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governmental competition 40 JTCs see jurisdictional transaction government failure 122 costs (JTCs) government policies 15 jurisdiction 123, 187–8 diversity in 22 boundaries 89 Graziosi, G. R. 151 Coase theorem 84–90 Greece 51–2 constitutional permissibility of 130 grievances 7, 73 design 28–9, 192 group secession 150 exchange, opportunity costs of 122–3 Hahnel, R. 76 formation, spontaneous order in Hall, Abigail 193 198 Hartley, John 183 markets 86 Hayek, F. A. 37, 50, 184, 192 modes of 202 heterogeneity 43, 197–8 planning 192 Hobbesian abstraction 68 polycentric systems of 86 Hobbesian legal tradition 68 potential mechanisms of 182 Hobbes, Thomas 1, 43 property rights 72 homogeneity in political interactions relations 99 198 reorganisation, constitutional Hooghe, Liesbet 5, 50, 90 constraints on 122 hypothetical agreement 43 rights 97 jurisdictional orders 188, 195 Icelandic Free Commonwealth 5, 52–3, dynamic mechanisms of 186 201 existing 199 incumbent entitlement holders 134 models of 197 Inman, R. P. 87 modes of 188 institutional possibility frontier (IPF) planning of 193 121 spectrum of 187 institutions 24, 119, 122 jurisdictional transaction costs (JTCs) inter-jurisdictional competition 27 116, 119, 121–4, 129 inter-jurisdictional externality 29 inter-jurisdictional relations 72, 77, knowledge problem 11–12, 37, 94 99–100 of nation-states 181–6, 191–3 inter-jurisdictional spillovers 26–7 knowledge spillovers, potentials for 198 inter-jurisdictional transfers 177 internal exit 150–56, 158 laboratory federalism 33, 35–6 basic 157 laboratory panarchism 33, 36 Buchanan and Faith model of 174 Landauer, Gustav 40 concept of 147 latent state bargains 111–12 cryptosecession 159–64 Leeson, Peter 84 and fiscal exploitation 147–50 legal rights, transferability of 86 results for various assumptions legibility 1, 60, 158–9, 163–4, 174, 155 176–7, 180, 206 theory of 147–8 technologies of 158–9 international economic integration 89 Les Soirées de la Rue Saint-Lazare International Monetary Fund 2 (The Evenings of the Rue Saint- Internet 2 Lazare) (de Molinari) 39 IPF see institutional possibility frontier Lewis, Bernard 54 (IPF) Libecap, G. D. 83 Islamic law (Shariah) 55 Long, R. T. 5, 36, 47
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majoritarian democracy 3 non-territorial cryptosecession 150 majoritarian voting 3, 34 non-territorial decentralisation 15–16, markets 123 20–22, 25, 29 and agglomerations 123 non-territorial exit, theory of 11 allocation of resources 192 non-territorial federalism 21–2, 56–7, anarchism 40 182 decentralisation 16 non-territorial federal systems 5–6 decoupling of 60–61 non-territorial governance 20–22, 29, failure 122 40, 54, 190, 196, 200–201 socialist economic planning 192 concept 39, 51 transaction costs 122, 124 system of 48 Marks, Gary 5, 50, 90 technology and 62 maximum social surplus 91–2 non-territorial identities 2 May, Timothy C. 62, 144 non-territorial internal exit 9–11, 180, Medem, Vladimir 56 203 Melamed, A. D. 77 cryptosecession 156–80 membership externality 93 efficiency and exploitation 143–7 Mencken, H. L. 14 and fiscal exploitation 147–50 ‘millet’ system 5 model 150–56 misallocation, distinct sources of 122 non-territoriality 22, 33, 52, 59–60 mobility costs 19, 109 non-territorial jurisdictions 11, 24 modern societies, heterogeneity of non-territorial millet system 45 197 non-territorial minorities 59 monopolistic governance 23 non-territorial political jurisdictions multi-level governance 16, 50, 201 constellaxy 194–9 multiple majority coalitions 94 knowledge problem of nation-state Muslim millet 54–5 181–3 personal secession 189–91 Nakamoto, Satoshi 65, 144 spontaneous order and knowledge national-cultural autonomy 16, 45, 59, 191–3 78, 195 spontaneous order in jurisdictions national self-determination 45 186–9 nation-state spontaneous order in politics 184–5 creation of 1 non-territorial political organisation 49 description of 1 non-territorial political units 37 harmonious 194–9 non-territorial polycentric democracy knowledge problem of 12, 181–3, 12–13, 192–5, 199 191–3, 196 non-territorial publics 194–5 spontaneous order of 191–3 non-territorial secession 144 natural resource depletion 92 non-territorial states 4, 20–21, 45 Natur under Kultur (Schlick) 44 non-territorial system of governance Nettlau, M. 40 15 network technology 32, 61–2 non-territorial unbundling 1, 3–5, 10, nominal property allocation 105–6 28, 30, 32–3, 36, 51, 132, 144–6, nominal property rights 98–9, 102 200–204 structure of 105 complexity of choices 28–31 transitions of 107 concept of 31 non-exploitative tax rate 158–9, 165, cryptosecession and 174–80 170, 172 as discovery 31–4 non-territorial consociation 51 dynamic of 177
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functional overlapping competing inventor of 40 jurisdictions (FOCJ) 48–50 non-territorial aspect of 42 governance 58 philosophical underpinning for 47 historical and contemporary cases political philosophy of 4, 16, 35, of 51–69 39–44, 47, 200–201 institutions of 131–2 theory of 44 limits of territorial political sorting panarchist political theory 41 19–20 panarchist theory 42 model for 147 parallel experimentation 25 multi-level governance 50 parallel governance 16, 27, 30, 33, 58 non-territorial solution 20–22 Parallel Polis 5 Parallel Polis 45–6 parallel states in Czechoslovakia 46 political choice problem 14–16 Pareto, V. 29, 37, 74 political philosophy of panarchism Parisi, F. 79 39–44 partial exit 190 process of 2, 10 partial internal exit 10, 147, 176, 203 prospect of 8 partial secession 160 ‘pure’ theory of 6 permissionless 149 scale and spillover externalities 26–7 personal jurisdictions 100 Schlick 44–5 personal mobility 188–9 system 9–10 personal secession 150, 188–90 traditional solution 17–19 non-territorial 189–91 unbundled solution 22–4 notion of 189 utopia 46–7 Pigouvian taxation and subsidy 75 virtual cantons 47–8 PJCT see political-jurisdictional Coase non-zero transaction costs 87 theorem (PJCT) Nozick, R. 16, 46–8 PJPF see political-jurisdictional possibilities frontier (PJPF) Olson, M. 18, 24, 53 policy modification relations 101–2 ‘one-size-fits-all’ political monopolism political authority 8, 93, 116, 129, 138, 23 192–3 ‘one size fits all’ social contract 43 allocation of 8, 71, 73, 78, 108–9, opportunity costs 188–9 118, 125, 128, 130–31, 134–5, optimal exploitation 157 193, 202 optimally exploitative tax rate 169 assemblage of 34 Orthodox Christian millet 55 foundation of 1 Ostrom, E. 91, 95–6 misdirected application of 91 Ostrom, V. 30–31, 96 monopoly on 191 Ottoman Empire 6 optimal allocation of 8, 73 millet system 53–6, 201 positions of 90 social system 53–6 political bargains 79 overexploitative tax rate 165–6 political choice 15, 17 and no secession 168 features of 16, 18 and secession 168 political Coase theorem 78–84 political commons 59, 72, 95–6, 201 panarchism 40–41, 43 boundaries of 114 from anarchism 41 management 94 anarchism distinction 42 via production of public goods 114 classical foundations of 39 political consultants 31 definition of 41 political decentralisation 16–19
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political decision-making 122, 143 political-jurisdictional transformation political discrimination 96 frontier (PJTF) 9, 119–20, 132–42, political-economic activity 10, 202 114–15 trajectory of 136 political economy 195 political-jurisdictional transitions 8 political enterprises, inefficiency of political jurisdictions 193 96 adjustment of 85, 114 political entrepreneurship 13, 27, 30, decoupling of 20, 61 186, 192–3 political offerings 42 political exchange, Coasean 7, 71 political order 42 political geography 12, 197–8 political organisation 6 political innovations 133 modes of 28 political-institutional system 80 territorial form of 200 political-jurisdictional change 177, political preferences 19, 22–3 190–91 heterogeneity of 33 political-jurisdictional Coase theorem plurality of 47 (PJCT) 7–8, 74–90, 99, 105, 108, political property rights 133 115, 117, 119, 126–7, 146, 201 political quasi-market 21 analogy 108–13 political reality 93 component of 114 political reallocations, property rights elaborating 113–18 and beneficiaries of 134 levels of jurisdiction 73 political science, traditional problems markets, politics and jurisdictions of 143 70–73, 97–108 political sorting 20, 109 polities as commons 90–97 political territoriality 20 political-jurisdictional competition 18 political theory 2 political-jurisdictional entrepreneurs political transaction costs (PTCs) 117, 194 119, 121, 124, 130, 142 political-jurisdictional exchange 73 political transformation frontier 134 political-jurisdictional institutions 121 politics-as-markets metaphors 78 political-jurisdictional order 145, 199, polity-economies 129 203 polycentric democracy 182, 185, 188, political-jurisdictional outcomes 142 190–91 political-jurisdictional possibilities polycentric governance 34, 185 frontier (PJPF) 8, 119, 121, 124, polycentric systems 35–6, 95–6 137–41, 201–2 polycentrism 78, 93 curves 124, 126, 128, 131 population transfers 185, 187–8, 195–6, graphical illustration of 129 203 location of 127 positive transaction costs 73–5, 84, non-optimal portions of 134 115, 117, 124 surfaces 127, 132 post-tax income 152–4, 156–7 political-jurisdictional possibility Potts, Jason 183 model 134 power political-jurisdictional reallocations 97 boundaries and overlapping political-jurisdictional re-equilibration, assemblages of 191 subsequent patterns of 11 constitutional separation of 53 political-jurisdictional system 7–8, 70, private property 85, 96, 133 193, 201 product bundling 35 political-jurisdictional transaction property-authority allocations 119, costs 42, 115–16 131
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property rights 70, 72–4, 80, 97, 114, ‘rational ignorance’ of voters 31 116, 138 rebundling 4, 22, 28, 200 actual structure of 80 re-equilibration 179 allocation of 7–9, 73, 77, 105–6, regional-community government 58 108–10, 114–15, 119–20, 125–6, reintegration 179 128, 130, 134–5, 202 religious identity 142 assignment of 93 Renner, Karl 5, 56–7 changes in 138–9 resistance, technologies of 159 claims 98 resources, allocation of 28, 77 ‘conventional’ 72 Robinson, J. 136 de jure allocation of 126 robust political economy 28 embodiment of 85 Rodrik, D. 133–4, 136, 138, 200 exchange of 75 Roland, G. 88 initial allocation of 86 Rome 51–2 initial embodiment of 87 roving bandits 53 institutional embodiment of 85–6 Rubinfeld, D. L. 87 institutional literature on 120 modified structure of 80 scale economies, diversity of 23 optimal reallocation of 121 Schleicher, D. 34 political-jurisdictional allocations Schlick, Moritz 4, 44–6 of 86 Schlick states 201 private exchanges of 114–15 secession-proof tax rate 153, 157, 160, reallocations of 97 162–5, 171–2, 174 relations 103–4 secession/secessionism 73, 111 separate and transferable 92 costs of 148 structure of 80–81 group 150 sub-optimal allocation of 122 partial 160 transferring 74 personal 150 prospective entitlement holders 134, polities after 156 136 proof condition 152, 162 public enterprises 25–6 theory of 147–8 public goods 61, 88, 147, 151–2, 157 threat of 149, 151, 156 public–private partnerships 61 self-determination, demands for 59 public pronouncement 52 self-governing community 5 public services, preferred bundles of 18 self-governing privileges 55 self-sufficient cryptoeconomies 63 QANGOs see Quasi-autonomous shared sovereignty 2 non-government organisations Sheeran, K. A. 76 (QANGOs) social capital 129 Quasi-autonomous non-government social contracts 42–5 organisations (QANGOs) 49 social costs, source of 121 quasi-market competition, innovative social losses in markets 123 benefits of 21–2 social preferences 3, 17–18 quasi-market mechanism 18 social surplus 91–2 The Question of Nationalities and social welfare, levels of 91–2 Social Democracy (Bauer) 56 ‘sorting’ efficiencies 34 sorting failure 122 racism 142 sovereign entities 2 radical decentralisation of power 47 sovereignty 2 rational constructivism 183, 191–2 unbundling 1–2
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Sparta 51–2 ‘Things’ 5 ‘special commune’ public jurisdictions think tanks 31 6 Tiebout, Charles 19, 87, 109, 181, 185 spillovers analysis 21 diversity of 23 construct 87 externalities 26–7 model, limitations to 182 inter-jurisdictional 27 sorting and internal rebordering 191 Spolaore, E. 88 sorting model 147, 181 spontaneous jurisdictional order 187–8 total tax revenue 151–2 spontaneous order 188, 191–3 trade-offs 3, 123, 156–7 in jurisdictions 186–9, 198 traditional contractarian political and knowledge problems 191–3 theories 42–3 in politics 184–5 traditional federalism 59 theory of 193 transaction cost 9, 73, 109, 112–15, spontaneous political order 186 117–18, 120, 122, 124, 129 spontaneous secession, dynamic of 189 augmentations of 76 state intervention 78 comparative impositions of 108, 120 state reach relations 100 exit-related 188–9 states, defined 45 inevitability of 76 stationary bandits 53 jurisdictional 123, 129 Stigler, G. J. 70–71 reduction in 125 strategic bargaining 76 size and imposition of 77 Swiss Confederation 58 unprohibitive 80 transactions 128–9 taxes/taxation 91 transformation frontier, location and evasion, form of 148 shape of 136 functions of 159 transform governance 143 preferred bundles of 18 trustless mixing 66 rates 165 Tullock, Gordon 31, 41–3, 78–9, 94 technology 190 tyranny of majority 33–4 and non-territorial governance 62 telecommunications 60 unbundling 200 territorial bundling 1 form of 17 territorial decentralisation 3, 16–19, functions 4 25, 29 governance 3, 16, 22, 25, 36 territorial disputes 59 non-territorial 200–201 territorial federalism 57 sovereignty 1–2 territorial governance 6, 20, 196 state 24–5 territorialised transactions costs 73 system 28 territorial jurisdictions 19, 33 unitary majoritarian system 17 territorial monopolism 44 United Nations 49 territorial monopoly 49–50 UnSystem 66 territorial nation-state 1 ‘utopian’ political communities 4–5, territorial political organisation 2 46 territorial political sorting, limits of 19–20 Vanberg, Viktor 30 territorial political units 37 Velvet Revolution 5 territorial polycentric democracy 197 virtual cantons 5, 47–8 ‘territorial’ property 97 virtual communities 62 territorial sovereignty 41 virtual digital communities 2
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virtual states 148, 157 Weber, M. 1 von Mises, Ludwig 28–9, 192 Weingast, B. 84 voters/voting 18, 80 Westphalian sovereignty, concept and limitation of 19 practice of 1 logic of 21 Wicksell, K. 94 ‘rational ignorance’ of 31 territorial expressions of 16 zero private income 157 zero transaction cost 74–6, 80, 117, 124 Wagner, R. E. 184, 186 benchmark 124 Warren, R. 185 Zube, John 40–42
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