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Buchanan on externalities: An exercise in applied subjectivism

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  • Marciano, Alain

Abstract

Buchanan's work on the methodology of economics includes many references to externalities. Buchanan has emphasized that a subjective conception of economics, and a focus put on exchange rather than on choice, has implications on an analysis of externalities. In this paper, we analyze the reverse claim: Buchanan's views on externalities are a perfect illustration of his plea for subjectivism in economics, and the need to focus on economics-as-a-science-of exchange. We show that Buchanan's treatment of externalities was a “laboratory” for his claims and arguments about subjectivism.

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  • Marciano, Alain, 2011. "Buchanan on externalities: An exercise in applied subjectivism," Journal of Economic Behavior & Organization, Elsevier, vol. 80(2), pages 280-289.
    • Handle: RePEc:eee:jeborg:v:80:y:2011:i:2:p:280-289
    DOI: 10.1016/j.jebo.2011.06.025
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    References listed on IDEAS

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    1. R. H. Coase, 2013. "The Problem of Social Cost," Journal of Law and Economics, University of Chicago Press, vol. 56(4), pages 837-877.
    2. Richard Abel Musgrave, 1939. "The Voluntary Exchange Theory of Public Economy," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 53(2), pages 213-237.
    3. Tibor Scitovsky, 1954. "Two Concepts of External Economies," Journal of Political Economy, University of Chicago Press, vol. 62, pages 143-143.
    4. Francis M. Bator, 1958. "The Anatomy of Market Failure," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 72(3), pages 351-379.
    5. Charles M. Tiebout, 1956. "A Pure Theory of Local Expenditures," Journal of Political Economy, University of Chicago Press, vol. 64, pages 416-416.
    6. Buchanan, James M, 1988. "Contractarian Political Economy and Constitutional Interpretation," American Economic Review, American Economic Association, vol. 78(2), pages 135-139, May.
    7. Charles W. Baird, 1989. "James Buchanan and the Austrians: The Common Ground," Cato Journal, Cato Journal, Cato Institute, vol. 9(1), pages 201-230, Spring/Su.
    8. Alain Marciano, 2010. "Why markets do not fail. Buchanan on voluntary cooperation and externalities," Center for the History of Political Economy Working Paper Series 2010-05, Center for the History of Political Economy.
    9. James M. Buchanan, 1962. "Politics, Policy, and the Pigovian Margins," Palgrave Macmillan Books, in: Chennat Gopalakrishnan (ed.), Classic Papers in Natural Resource Economics, chapter 10, pages 204-218, Palgrave Macmillan.
    10. Charles M. Tiebout, 1961. "An Economic Theory of Fiscal Decentralization," NBER Chapters, in: Public Finances: Needs, Sources, and Utilization, pages 79-96, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Elodie Bertrand, 2015. "From the Firm to Economic Policy: The Problem of Coase's Cost," Post-Print hal-03512866, HAL.
    2. Maxime Desmarais-Tremblay, 2014. "On the Definition of Public Goods. Assessing Richard A. Musgrave's contribution," Post-Print halshs-00951577, HAL.
    3. Art Carden & M. Scott King & Audrey Redford & James E. Hanley, 2021. "James M. Buchanan’s Constrained Vision in Cost and Choice ," Journal of Private Enterprise, The Association of Private Enterprise Education, vol. 36(Fall 2021), pages 91-109.

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    More about this item

    Keywords

    Subjectivism; Objectivism; Choice; Exchange; Buchanan; Externalities;
    All these keywords.

    JEL classification:

    • B21 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Microeconomics
    • B31 - Schools of Economic Thought and Methodology - - History of Economic Thought: Individuals - - - Individuals
    • B41 - Schools of Economic Thought and Methodology - - Economic Methodology - - - Economic Methodology

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