Economic Impacts of Direct Democracy (Focusing on UK's Withdrawal from the EU)

This thesis deals with direct democracy and its consequences and impacts on society, states and individuals. Its aim is to find, describe and evaluate the direct and indirect effects of direct democracy. Specifically, the work focuses on the phenomenon called "Brexit". On its example I go into detail about the whole process of the referendum, which resulted in the United Kingdom leaving the European Union. The theoretical part describes the apparatus of direct democracy, its negatives and positives. In it, I also explain how the rational voter thinks about the pros and cons of an issue and casts his vote. In the practical part, I successfully prove the provisional negative effects of Brexit on the unfavorable development of the exchange rate, rising prices in healthcare, the food market and the costs of the referendum itself. In this thesis I also talk about indirect negative effects, which, however, are currently difficult to pinpoint, given that the United Kingdom is still in the process of negotiating the deals with the European Union. I also describe the entire process of Brexit and I subsequently add an explanation of several social impacts in the form of the future of Scotland or Ireland to the already identified economic impacts.