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 di¢ culties surviving because of problems in providing effective internal and external security. Competitive proprietary rule (or, 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:||Jan 2011|
|Date of revision:|
|Contact details of provider:|| Postal: Irvine, CA 92697-3125|
Phone: (949) 824-5788
Web page: http://www.economics.uci.edu/
More information through EDIRC
References listed on IDEAS
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.:
- 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.
- Robert H. Bates & Avner Greif & Margaret Levi & Jean-Laurent Rosenthal, 1998. "Analytic Narratives," Economics Books, Princeton University Press, edition 1, number 6355, 01-2013.
- McBride, Michael & Skaperdas, Stergios, 2014.
"Conflict, settlement, and the shadow of the future,"
Journal of Economic Behavior & Organization,
Elsevier, vol. 105(C), pages 75-89.
- 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.
- Garance Genicot & Stergios Skaperdas, 2002.
"Investing in Conflict Management,"
Journal of Conflict Resolution,
Peace Science Society (International), vol. 46(1), pages 154-170, February.
- Birendra K. Rai & Rajiv Sarin, 2007. "Generalized Contest Success Functions," Jena Economic Research Papers 2007-082, Friedrich-Schiller-University Jena.
- Merwan Engineer, 1986. "Taxes, Public Goods and the Ruling Class," Working Papers 672, Queen's University, Department of Economics.
- 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, December.
- Ronald Findlay, 1990. "THE NEW POLITICAL ECONOMY: ITS EXPLANATORY POWER FOR LDCs," Economics and Politics, Wiley Blackwell, vol. 2(2), pages 193-221, 07.
- Corchón, Luis C. & Dahm, Matthias, 2007.
"Foundations for contest success functions,"
UC3M Working papers. Economics
we070401, Universidad Carlos III de Madrid. Departamento de Economía.
- Michael McBride & Gary Milante & Stergios Skaperdas, 2011.
"Peace and War With Endogenous State Capacity,"
Journal of Conflict Resolution,
Peace Science Society (International), vol. 55(3), pages 446-468, June.
- Wintrobe,Ronald, 1998. "The Political Economy of Dictatorship," Cambridge Books, Cambridge University Press, number 9780521583299, November.
- Avner Greif, 1997. "Self-enforcing Political System and Economic Growth: Late Medieval Genoa," Working Papers 97037, Stanford University, Department of Economics.
- 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.
- 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.
- 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.
When requesting a correction, please mention this item's handle: RePEc:irv:wpaper:101110. 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: (Jennifer dos Santos)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.