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Constitutional Rules

Author

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  • Francesco Giovannoni
  • Toke S. Aidt

Abstract

This paper proposes a normative theory of constitutional rules. We characterize the set of optimal constitutional rules under different assumptions about the degree of contractual imperfections. Our model explains why constitutions contain different types of rules. In particular, we derive conditions under which it is optimal, in addition to a standard decision rule (e.g., simple majority), to introduce veto rules (that block certain types of decisions) and supermajority rules (that allow the veto rule to be overruled). Our model also explains the existence of amendment rules and checks and balances

Suggested Citation

  • Francesco Giovannoni & Toke S. Aidt, 2004. "Constitutional Rules," Econometric Society 2004 North American Summer Meetings 540, Econometric Society.
  • Handle: RePEc:ecm:nasm04:540
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    References listed on IDEAS

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    1. Oliver Hart & John Moore, 1999. "Foundations of Incomplete Contracts," Review of Economic Studies, Oxford University Press, vol. 66(1), pages 115-138.
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    13. Giovannoni, Francesco, 2003. "Amendment Rules in Constitutions," Public Choice, Springer, vol. 115(1-2), pages 37-61, April.
    14. Mueller, Dennis C, 1991. "Constitutional Rights," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 7(2), pages 313-333, Fall.
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    Cited by:

    1. Toke Aidt & Francesco Giovannoni, 2011. "Critical decisions and constitutional rules," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 37(2), pages 219-268, July.
    2. Carmine Guerriero, 2006. "Dependent Controllers and Regulation Policies: Theory and Evidence," Working Papers 2006.109, Fondazione Eni Enrico Mattei.

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    More about this item

    Keywords

    Constitutions; constitutional design; social contracts; majority rules; amendments; checks and balances;
    All these keywords.

    JEL classification:

    • H10 - Public Economics - - Structure and Scope of Government - - - General
    • D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General
    • D - Microeconomics

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