Constitutionalism, Division of Power and Transaction Costs
According to many democracy theorists, there is an unavoidable trade-off between constitutionalism and the need for political action. This paper criticizes that belief. Rather, it argues that a division of power, while sometimes entailing high political transaction costs, can nevertheless be beneficial and that it is not necessarily the case that a division of power does entail high transaction costs. The analysis expands the framework of Buchanan and Tullock (1962). Constitutionalism is thus defended against one of its main perceived deficiencies: its bringing about gridlock. This does not always happen, and when it does, it is often a good thing.
|Date of creation:||11 Sep 2002|
|Date of revision:|
|Publication status:||Published in Public Choice, 2003, pages 99-124.|
|Contact details of provider:|| Postal: |
Phone: 08-441 59 00
Fax: 08-441 59 29
Web page: http://www.ratio.se/
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.:
- Matthias Benz & Alois Stutzer:, .
"Are Voters Better Informed When They Have a Larger Say in Politics? Evidence for the European Union and Switzerland,"
IEW - Working Papers
119, Institute for Empirical Research in Economics - University of Zurich.
- Matthias Benz & Alois Stutzer, 2004. "Are Voters Better Informed When They Have a Larger Say in Politics? -- Evidence for the European Union and Switzerland," Public Choice, Springer, vol. 119(1_2), pages 31-59, 04.
- Persson, Torsten & Tabellini, Guido, 2001.
"Political Institutions and Policy Outcomes: What are the Stylized Facts?,"
CEPR Discussion Papers
2872, C.E.P.R. Discussion Papers.
- Torsten Persson & Guido Tabellini, 2001. "Political Institutions and Policy Outcomes: What are the Stylized Facts?," Temi di discussione (Economic working papers) 412, Bank of Italy, Economic Research and International Relations Area.
- Torsten Persson & Guido Tabellini, . "Political Institutions and Policy Outcomes: What are the Stylized Facts?," Working Papers 189, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
- Torsten Persson & Guido Tabellini, 2001. "Political Institutions and Policy Outcomes: What Are the Stylized Facts?," CESifo Working Paper Series 459, CESifo Group Munich.
- Frey, Bruno S, 1994. "Direct Democracy: Politico-economic Lessons from Swiss Experience," American Economic Review, American Economic Association, vol. 84(2), pages 338-42, May.
- Feld, Lars P. & Kirchgassner, Gebhard, 2000. "Direct democracy, political culture, and the outcome of economic policy: a report on the Swiss experience," European Journal of Political Economy, Elsevier, vol. 16(2), pages 287-306, June.
- Klaus Zimmermann & Tobias Just, 2000. "Interest Groups, Referenda, and the Political Process: On the Efficiency of Direct Democracy," Constitutional Political Economy, Springer, vol. 11(2), pages 147-163, June.
- Matsusaka, John G, 2000. "Fiscal Effects of the Voter Initiative in the First Half of the Twentieth Century," Journal of Law and Economics, University of Chicago Press, vol. 43(2), pages 619-50, October.
- Lars P. Feld & John G. Matsusaka, 2000. "Budget Referendums and Government Spending: Evidence from Swiss," CESifo Working Paper Series 323, CESifo Group Munich.
- Frey, Bruno S, 1997. "A Constitution for Knaves Crowds Out Civic Virtues," Economic Journal, Royal Economic Society, vol. 107(443), pages 1043-53, July.
- W. J. Henisz, 2000. "The Institutional Environment for Economic Growth," Economics and Politics, Wiley Blackwell, vol. 12(1), pages 1-31, 03.
- Moser, Peter, 1999. "The impact of legislative institutions on public policy: a survey," European Journal of Political Economy, Elsevier, vol. 15(1), pages 1-33, March.
- Feld, Lars P & Savioz, Marcel R, 1997. "Direct Democracy Matters for Economic Performance: An Empirical Investigation," Kyklos, Wiley Blackwell, vol. 50(4), pages 507-38.
- Buchanan, James M., 1986.
"The Constitution of Economic Policy,"
Nobel Prize in Economics documents
1986-1, Nobel Prize Committee.
- Landes, William M & Posner, Richard A, 1975.
"The Independent Judiciary in an Interest-Group Perspective,"
Journal of Law and Economics,
University of Chicago Press, vol. 18(3), pages 875-901, December.
- William M. Landes & Richard A. Posner, 1975. "The Independent Judiciary in an Interest-Group Perspective," NBER Working Papers 0110, National Bureau of Economic Research, Inc.
- Buchanan, James M, 2001. "Direct Democracy, Classical Liberalism, and Constitutional Strategy," Kyklos, Wiley Blackwell, vol. 54(2-3), pages 235-42.
When requesting a correction, please mention this item's handle: RePEc:hhs:ratioi:0003. 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: (Martin Korpi)
If references are entirely missing, you can add them using this form.