Constitutionalism, Division of Power and Transaction Costs
AbstractAccording to many democracy theorists, there is an unavoidable trade-off between constitutionalism and the need for political action. This paper criticizes that belief. Rather, it argues that a division of power, while sometimes entailing high political transaction costs, can nevertheless be beneficial and that it is not necessarily the case that a division of power does entail high transaction costs. The analysis expands the framework of Buchanan and Tullock (1962). Constitutionalism is thus defended against one of its main perceived deficiencies: its bringing about gridlock. This does not always happen, and when it does, it is often a good thing.
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Bibliographic InfoPaper provided by The Ratio Institute in its series Ratio Working Papers with number 3.
Length: 26 pages
Date of creation: 11 Sep 2002
Date of revision:
Publication status: Published in Public Choice, 2003, pages 99-124.
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Political transaction costs; Constitutionalism; Political institutions; Division of power; Quality of political decision-making;
Other versions of this item:
- Berggren, Niclas & Karlson, Nils, 2003. " Constitutionalism, Division of Power and Transaction Costs," Public Choice, Springer, vol. 117(1-2), pages 99-124, October.
- D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General
- H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
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