Proprietary Public Finance: On its Emergence and Evolution out of Anarchy
Proprietary rule, whereby the state is owned by a ruler who maximizes tax revenues minus the costs of governing, is a useful ideal type that describes many of the states that have ever existed. The study of proprietary rule and its public finance, however, is comparatively scarce. I argue that proprietary rule emerges out of anarchy and its main alternative - self-governance - has difficulties surviving because of problems in providing effective internal and external security. Competitive proprietary rule (or, organized anarchy) is the market structure for the provision of security that is more stable, but is highly inefficient because all the savings that come out of the public provision of security are dissipated into contests for power among proprietary rulers. I also explore how competitive proprietary rule can be consolidated into more complex forms of governance.
|Date of creation:||2011|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: +49 (89) 9224-0
Fax: +49 (89) 985369
Web page: http://www.cesifo.de
More information through EDIRC
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.:
- Avner Greif, 1997. "Self-enforcing Political System and Economic Growth: Late Medieval Genoa," Working Papers 97037, Stanford University, Department of Economics.
- Robert H. Bates & Avner Greif & Margaret Levi & Jean-Laurent Rosenthal, 1998. "Analytic Narratives," Economics Books, Princeton University Press, edition 1, volume 1, number 6355.
- James M. Buchanan & Richard A. Musgrave, 1999. "Public Finance and Public Choice: Two Contrasting Visions of the State," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262024624, June.
- Elinor Ostrom, 2010.
"Beyond Markets and States: Polycentric Governance of Complex Economic Systems,"
American Economic Review,
American Economic Association, vol. 100(3), pages 641-72, June.
- Ostrom, Elinor, 2009. "Beyond Markets and States: Polycentric Governance of Complex Economic Systems," Nobel Prize in Economics documents 2009-4, Nobel Prize Committee.
- Luis Corchon & Matthias Dahm, 2007.
"Foundations For Contest Success Functions,"
Economics Working Papers
we070401, Universidad Carlos III, Departamento de Economía.
- repec:cup:cbooks:9780521583299 is not listed on IDEAS
- Garance Genicot & Stergios Skaperdas, 2002.
"Investing in Conflict Management,"
Journal of Conflict Resolution,
Peace Science Society (International), vol. 46(1), pages 154-170, February.
- Merwan Engineer, 1986. "Taxes, Public Goods and the Ruling Class," Working Papers 672, Queen's University, Department of Economics.
- Birendra K. Rai & Rajiv Sarin, 2007. "Generalized Contest Success Functions," Jena Economic Research Papers 2007-082, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
- Grossman, Herschel I. & Noh, Suk Jae, 1994. "Proprietary public finance and economic welfare," Journal of Public Economics, Elsevier, vol. 53(2), pages 187-204, February.
- Michael McBride & Stergios Skaperdas, 2009.
"Conflict, Settlement, and the Shadow of the Future,"
CESifo Working Paper Series
2897, CESifo Group Munich.
- Michael McBride & Stergios Skaperdas, 2009. "Conflict, Settlement, and the Shadow of the Future," Working Papers 080922, University of California-Irvine, Department of Economics.
- Michael McBride & Gary Milante & Stergios Skaperdas, 2009.
"Peace and War with Endogenous State Capacity,"
091002, University of California-Irvine, Department of Economics.
- repec:cup:cbooks:9780521794497 is not listed on IDEAS
- Moselle, Boaz & Polak, Benjamin, 2001. "A Model of a Predatory State," Journal of Law, Economics and Organization, Oxford University Press, vol. 17(1), pages 1-33, April.
- Martin C. McGuire & Mancur Olson Jr., 1996. "The Economics of Autocracy and Majority Rule: The Invisible Hand and the Use of Force," Journal of Economic Literature, American Economic Association, vol. 34(1), pages 72-96, March.
- Ronald Findlay, 1990. "THE NEW POLITICAL ECONOMY: ITS EXPLANATORY POWER FOR LDCs," Economics and Politics, Wiley Blackwell, vol. 2(2), pages 193-221, 07.
When requesting a correction, please mention this item's handle: RePEc:ces:ceswps:_3495. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Julio Saavedra)
If references are entirely missing, you can add them using this form.