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Economic Consequences of Constitutions: A Theory and Survey

Author

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  • Kurrild-Klitgaard Peter

    (University of Southern Denmark)

  • Berggren Niclas

    (Ratio Institute, Stockholm)

Abstract

The paper outlines why and how political institutions, especially constitutional ones, matter for what decisions are made in the political process and thereby for how the economy functions. The main part contains a survey of empirical studies in this area. Among the things covered: the effects of political and economic freedom, not least property rights, on economic growth; how stricter budgetprocess rules affect tendencies for deficits; the role of electoral systems for shaping policies and affecting fiscal deficits; and the effects of separation of powers e.g., federalism and referenda on government size.Ce papier retrace dans les grandes lignes pourquoi et comment les institutions politiques, notamment celles de nature constitutionnelle, importent pour les décisions prises au niveau politique et en conséquence sur la manière dont fonctionne léconomie. La majeure partie du papier consiste en un examen des études empiriques dans ce domaine. Parmi les choses analysées : les effets de la liberté politique et économique, en particulier les droits de propriété, sur la croissance économique ; comment des règles plus strictes lors de lélaboration du budget influent sur la tendance au déficit ; le rôle des systèmes électoraux dans lélaboration des politiques et dans la taille des déficits ; et les effets de la séparation des pouvoirs par exemple fédéralisme et referenda sur la taille du gouvernement.

Suggested Citation

  • Kurrild-Klitgaard Peter & Berggren Niclas, 2004. "Economic Consequences of Constitutions: A Theory and Survey," Journal des Economistes et des Etudes Humaines, De Gruyter, vol. 14(1), pages 1-41, March.
  • Handle: RePEc:bpj:jeehcn:v:14:y:2004:i:1:n:1
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    Citations

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    Cited by:

    1. Stefan Voigt, 2011. "Positive constitutional economics II—a survey of recent developments," Public Choice, Springer, vol. 146(1), pages 205-256, January.
    2. Justesen, Mogens K. & Kurrild-Klitgaard, Peter, 2007. "The constitution of economic growth: Testing the prosperity effects of a Madisonian model on a panel of countries 1980‐2000," MPRA Paper 36063, University Library of Munich, Germany.
    3. Justesen, Mogens K., 2008. "The effect of economic freedom on growth revisited: New evidence on causality from a panel of countries 1970-1999," European Journal of Political Economy, Elsevier, vol. 24(3), pages 642-660, September.
    4. Peter Kurrild-Klitgaard, 2012. "Modeling constitutional choice: reflections on The Calculus of Consent 50 years on," Public Choice, Springer, vol. 152(3), pages 407-413, September.
    5. Mogens Justesen & Peter Kurrild-Klitgaard, 2013. "Institutional interactions and economic growth: the joint effects of property rights, veto players and democratic capital," Public Choice, Springer, vol. 157(3), pages 449-474, December.
    6. repec:ejw:journl:v:12:y:2015:i:3:p:400-431 is not listed on IDEAS
    7. Tanin, Tauhidul Islam & Masih, Mansur, 2017. "Does economic freedom lead or lag economic growth? evidence from Bangladesh," MPRA Paper 79446, University Library of Munich, Germany.
    8. Kurrild-Klitgaard, Peter, 2005. "Ulysses and the Rent-Seekers: The Benefits and Challenges of Constitutional Constraints on Leviathan," Ratio Working Papers 68, The Ratio Institute.
    9. Niclas Berggren, 2012. "The Calculus of Consent: some Swedish connections," Public Choice, Springer, vol. 152(3), pages 313-321, September.
    10. Lenger Alexander & Goldschmidt Nils, 2011. "Ordnungsökonomik als angewandte Wissenschaft. Zur notwendigen Zusammenführung von Theorie und Praxis / Constitutional Economics as an Applied Social Science. About the Essential Combination of Theory ," ORDO. Jahrbuch für die Ordnung von Wirtschaft und Gesellschaft, De Gruyter, vol. 62(1), pages 343-364, January.

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