Scotland and small country independence: the assessment

David N. F. Bell

Oxford Review of Economic Policy, 2014, vol. 30, issue 2, 189-207

Abstract: This paper reviews some of the issues consequent on the formation of new states through secession. While its particular focus relates to the potential withdrawal of Scotland from the United Kingdom, it discusses preference heterogeneity as a potential cause of the break-up of states, relating that to recent developments in the economics of identity. It examines some macroeconomic issues, particularly debt and currency, and reflects on how these might influence secession. It examines alternatives—fiscal decentralization—to secession and considers the strategies that those arguing for and against secession may deploy. It also explains the structure of this issue, explaining how the different contributions come together.

Date: 2014
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