This paper traces the normative side of James Buchanan's individualist-subjectivist-contractarian position. The literature on anarchy and radical self-governance treats Buchanan's position, and social contract theory more generally, as a rival rather than allied branch of analysis. However, I...

A self-enforcing monetary constitution has rules that agents acting within the system will uphold even in the presence of deviations from ideal knowledge and complete benevolence and it thus does not require external enforcement. What would such a constitution look like? Such a constitution, I...

This paper explores the effects of debt erosion on the market process. Debt erosion is the attempt by government to lower the real value of its debt through the creation of unexpected inflation. In addition to the costs recognised by most economists, debt erosion through unexpected inflation can...

The problem of financial stability is political and institutional, rather than narrowly economic. To achieve a more resilient financial system, we need to pay attention to the incentives of actors who have the power to act discretionarily, and to the knowledge limitations of such actors in the...

This paper identifies political property rights and jurisdictional rivalry as the fundamental dimensions to understand comparative economic and political development. After developing a general framework for the study of relative performance in the ‘market for governance', we argue that...

On March 16, 2013, Cyprus announced that it would accept a bailout that required imposing a one-time levy on bank deposits. It has been argued that, by making traditional deposit accounts seem less secure, the bailout announcement prompted some to consider — or reconsider — using the...

I develop a positive theory of sovereignty that is rooted in political exchange. The key concept I use to characterize sovereignty is self-enforcing exchange of political rights. I conclude that a sovereign is an individual or body party to political exchange that does not rest on third-party...

This brief paper estimates the effects of a rule change from the early days of professional basketball. The Mikan rule was intended to curb the offensive potency of tall players whose primary contribution to team output consisted of points scored close to the basket. The Mikan rule limited...

This paper explores key ideas in constitutional political economy by analyzing the writings of H.S.H. Prince Hans-Adam II of Liechtenstein. As a hereditary head of state, His Highness has significant political power. However, the constitution and political institutions of Liechtenstein give each...