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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 l'économie. 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 l'élaboration du budget influent sur la tendance au déficit ; le rôle des systèmes électoraux dans l'élaboration 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
    DOI: 10.2202/1145-6396.1114
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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, 2004. "Ulysses and the Rent-Seekers: The Benefits and Challenges of Constitutional Constraints on Leviathan," Advances in Austrian Economics, in: The Dynamics of Intervention: Regulation and Redistribution in the Mixed Economy, pages 245-278, Emerald Group Publishing Limited.
    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. Peter Kurrild-Klitgaard, 2015. "Classical Liberalism and Modern Political Economy in Denmark," Econ Journal Watch, Econ Journal Watch, vol. 12(3), pages 400–431-4, September.
    7. Peter Kurrild-Klitgaard, 2004. "The Political Economy of the Dynamic Nature of Government Intervention: An Introduction to Potentials and Problems," Advances in Austrian Economics, in: The Dynamics of Intervention: Regulation and Redistribution in the Mixed Economy, pages 3-20, Emerald Group Publishing Limited.
    8. Niclas Berggren, 2012. "The Calculus of Consent: some Swedish connections," Public Choice, Springer, vol. 152(3), pages 313-321, September.
    9. 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.
    10. Niclas Berggren & Christian Bjørnskov, 2022. "Political institutions and academic freedom: evidence from across the world," Public Choice, Springer, vol. 190(1), pages 205-228, January.
    11. 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.
    12. Michael C. Munger, 2022. "Giants among us: do we need a new antitrust paradigm?," Constitutional Political Economy, Springer, vol. 33(4), pages 445-460, December.
    13. 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.

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