The newly emerging subdiscipline of constitutional economics is dominated by adherents to social contract theory although this approach has been severely criticized many a time. In recent years, an alternative approach in which constitutions are conceptualized as conventions has emerged. It is...

This paper analyzes whether nation-state governments can increase their credibility by becoming members of international organizations. Credibility is an important asset because it determines the real interest rate and is expected to have an important impact on investment and growth. It is...

It has been argued that procedural formalism undermines economic efficiency by fostering rent-seeking and corruption. We challenge this view by arguing that a number of judicial procedures foster economic growth by increasing the predictability of court decisions, which leads to more...