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Eric Jones has found that excessive taxes were detrimental for pre-modern China’s economic growth whereas moderate taxes were conducive for Europe’s economic growth. This paper provides a political-economic answer to the question why these two tax systems came about. Taxation is only...
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The paper compares the legal rules for private clubs with the constitutions of representative governments. Though both institutions are designed to provide public goods for their members they are organized quite differently. In clubs the power to grant power must not be delegated to the agents,...
Persistent link: https://www.econbiz.de/10010866598
The state can be conceived as an organization to protect personal freedom and to provide public goods. Consequently, we expect a constitution to consist of two different sets of rules; rules on personal freedom and rules for making collective decisions on public goods (mostly budgetary rules)....
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The article reviews a small monograph by K. Wicksell entitled Our taxes. Who pays them and who should pay them? It sheds some light on why Wicksell, a radical of his time, was so conservative as an economist. This paradox comes because Wicksell, as an economist, is often brought in line with the...
Persistent link: https://www.econbiz.de/10005705968
It is often said that parliament shouldrepresent the opinions found in thepopulation and that government should beheld accountable for its political program.It is shown that these two goals rely ontwo different basic models of democracywhich are not fully compatible with eachother: the model of...
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The European Union of today is neither a confederation nor a federation, but rather an association of compound states. It is shown that this mixture of two forms of constitutional contracts implies inconsistencies prone to political deadlocks. A Buchanan/Tullock/Rawls approach to a reform...
Persistent link: https://www.econbiz.de/10005808747