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Constitutional Rules

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Author Info
Toke S Aidt
Francesco Giovannoni ()

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Abstract

This paper proposes a normative theory of constitutional rules. The first-best cannot be achieved whenever constitutional rules cannot be made contingent on information about the costs and benefits of policy reforms. We characterize and welfare rank four classes of second best constitutions: constitutions that specify one rule for all types of decisions; constitutions that provide incentives for information about costs and benefits to be revealed; constitutions that allow for vetoes from interested parties and constitutions that specify different rules for different policy areas. In addition, we provide conditions for the existence of amendment rules that allow for changes to the original constitutional rules after the constitutional stage. Finally, we provide a new rationale for the existence of checks and balances.

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File URL: http://www.bris.ac.uk/Depts/CMPO/workingpapers/wp109.pdf
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Publisher Info
Paper provided by Department of Economics, University of Bristol, UK in its series The Centre for Market and Public Organisation with number 04/109.

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Length: 62 pages
Date of creation: Sep 2004
Date of revision:
Handle: RePEc:bri:cmpowp:04/109

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Related research
Keywords: constitutions; social contracts; majority rules; bill of rights; vetoes; referenda; amendments; checks and balances;

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Find related papers by JEL classification:
H10 - Public Economics - - Structure and Scope of Government - - - General
H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Salvador Barbera & Matthew O. Jackson, 2004. "Choosing How to Choose: Self-Stable Majority Rules and Constitutions," The Quarterly Journal of Economics, MIT Press, vol. 119(3), pages 1011-1048, August. [Downloadable!] (restricted)
    Other versions:
  2. Persson, Torsten & Roland, Gerard & Tabellini, Guido, 1997. "Separation of Powers and Political Accountability," The Quarterly Journal of Economics, MIT Press, vol. 112(4), pages 1163-1202, November.
    Other versions:
  3. Hart, Oliver & Moore, John, 1999. "Foundations of Incomplete Contracts," Review of Economic Studies, Blackwell Publishing, vol. 66(1), pages 115-38, January. [Downloadable!] (restricted)
    Other versions:
  4. Ticchi, Davide & Vindigni, Andrea, 2003. "Endogenous Constitutions," Seminar Papers 726, Stockholm University, Institute for International Economic Studies. [Downloadable!]
    Other versions:
  5. Giovannoni, Francesco, 2003. " Amendment Rules in Constitutions," Public Choice, Springer, vol. 115(1-2), pages 37-61, April. [Downloadable!] (restricted)
  6. Philippe Aghion & Patrick Bolton, 2003. "Incomplete Social Contracts," Journal of the European Economic Association, MIT Press, vol. 1(1), pages 38-67, 03. [Downloadable!] (restricted)
  7. Hans Gersbach, 2002. "Democratic Mechanisms: Double Majority Rules and Flexible Agenda Costs," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
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  8. Aghion, Philippe & Alesina, Alberto F & Trebbi, Francesco, 2002. "Endogenous Political Institutions," CEPR Discussion Papers 3473, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  9. Voigt, Stefan, 1997. " Positive Constitutional Economics: A Survey," Public Choice, Springer, vol. 90(1-4), pages 11-53, March. [Downloadable!] (restricted)
  10. Giovanni Maggi & Massimo Morelli, 2003. "Self Enforcing Voting in International Organizations," NBER Working Papers 10102, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  11. Mueller, Dennis C, 1991. "Constitutional Rights," Journal of Law, Economics and Organization, Oxford University Press, vol. 7(2), pages 313-33, Fall.
  12. Salvador Barbera & Matthew O. Jackson, 2002. "Choosing How to Choose: Self Stable Majority Rules," Microeconomics 0211003, EconWPA. [Downloadable!]
  13. Matthias Messner & Mattias K. Polborn, 2004. "Voting on Majority Rules," Review of Economic Studies, Blackwell Publishing, vol. 71(1), pages 115-132, 01. [Downloadable!] (restricted)
Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Aidt, T.S. & Giovannoni,F., 2005. "Critical Decisions and Constitutional Rules," Cambridge Working Papers in Economics 0523, Faculty of Economics, University of Cambridge. [Downloadable!]
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