The Economics And The Ethics Of Constitutional Order

Nobel Laureate James Buchanan questions how people can live together in peace, prosperity, and justice

This Festschrift was "presented" in electronic form to Buchanan on the occasion of his eightieth birthday on October 3, 1999, after dinner in Fairfax, Virginia. As one might have expected, the response to our call for papers was vo luminous. In looking over the many contributions, we felt that a "published" Festschrift was also possible and fitting for the eightieth birthday of so prodi gious and influential a scholar as Professor Buchanan. To that end we have assembled the following volume. In selecting the papers to be included here we have basically tried to choose those papers which in some way bear on Buchanan's contributions. Perfectly good papers about issues not related to Buchanan's research agenda or not referring directly to Buchanan's work were not included. Space constraints did not allow universal coverage, so choices had to be made. It should be stated clearly that these were our choices based on the criterion that the contribution be relevant to Buchanan's work. Buchanan had nothing whatsoever to do with the selection of papers for this volume. Once choices had been made, we arranged the papers by subject matter ranging from various aspects of Buchanan's work in economics, political science, philosophy, and related areas, to some more personal recollections of Jim as a professor, friend, and colleague. Including the latter material was also our decision, and this probably represents a choice with which Jim would not have agreed. We think, however, that the reader will find these pieces interesting and informative.

. . . Roth s book is useful and valuable. Using modern secular thought as his starting point, he reaches roughly the same conclusions that one would reach reasoning from the older Christian tradition. There is certainly much to like about that effort. Paul A. Cleveland, Markets & Morality This book is one of the best discussions of welfare economics since Murray Rothbard s classic paper of 1956 Toward a Reconstruction of Utility and Welfare Economics . David Gordon, The Mises Review Timothy Roth shows that social welfare theory, as currently defended by welfare economists and policymakers, is based on a confused and untenable moral theory, is incompatible with a rights-based legal order and is bound to promote unjust and arbitrary redistributions. By advocating a return to the Kantian conception of the moral agent, Roth shows the way to a normative economics that harmonizes with both intuitive morality and the American legal and constitutional tradition. Roger Scruton, Writer and Philosopher, formerly University Professor and Professor of Philosophy at Boston University, US The moral imperative of individual autonomy, embodied in the Kantian Rawlsian perspective on social order, cannot be reconciled with the utilitarian presuppositions that inform normative applications of modern economics. This book exposes the contradictions that are present when the basic philosophical foundations are ignored, a stance that is, unfortunately, characteristic of much modern discourse as well as political practice. James M. Buchanan, George Mason University, US and a Nobel Laureate At a time when technical economics dominates the thinking of much of the profession, it is important to be reminded that economics has roots in moral philosophy. Certainly this book, which deftly explores the ethical prior commitments underlying economic analysis, succeeds in bringing philosophical issues to the forefront. But it does more. Roth s closely reasoned study provides a clear exposition of the Kantian Rawlsian approach to public policy, and thus is able to establish a convincing critique of orthodox welfare theory. In general, the book offers a valuable change of perspective on social questions. Eirik G. Furubotn, Texas A&M University, US Because it is technically flawed and morally bankrupt, the author argues, the economist s consequence-based, procedurally detached theory of the state has contributed to the growth of government. As part of the Kantian Rawlsian contractarian project, this book seeks to return economics to its foundations in moral philosophy. Given the moral equivalence of persons, the greatest possible equal participation must be promoted, persons must be impartially treated and, because it is grounded in consequentialist social welfare theory (SWT), the economist s theory of the state must be rejected. Ad hoc deployment of SWT has facilitated discriminatory rent seeking and contributed to larger government. In contrast, this book argues that equal political participation and a constitutional impartiality constraint minimize rent seeking, respect individual perceptions of the public good and underwrite the legitimacy of government. Economists, moral philosophers and political scientists will find this book a unique contribution to the literature.

Deliberation and Decision explores ways of bridging the gap between two rival approaches to theorizing about democratic institutions: constitutional economics on the one hand and deliberative democracy on the other. The two approaches offer very different accounts of the functioning and legitimacy of democratic institutions. Although both highlight the importance of democratic consent, their accounts of such consent could hardly be more different. Constitutional economics models individuals as self-interested rational utility maximizers and uses economic efficiency criteria such as incentive compatibility for evaluating institutions. Deliberative democracy models individuals as communicating subjects capable of engaging in democratic discourse. The two approaches are disjointed not only in terms of their assumptions and methodology but also in terms of the communication - or lack thereof - between their respective communities of researchers. This book provides a comprehensive overview of the recent debate between the two approaches and makes new and original contributions to that debate.

This book examines the theoretical foundations of order ethics and discusses business ethics problems from an order ethics perspective. Order ethics focuses on the social order and the institutional environment in which individuals interact. It is a well-established paradigm in European business ethics. The book contains articles written by leading experts in the field and provides both a concise introduction to order ethics and short summary articles homing in on specific aspects of the order-ethical paradigm. It presents contributions describing fundamental concepts, historical roots, and the economic, social, and philosophical background of the theory. The second part of the handbook focuses on the theory's application in business, society, and politics, casting new light on an array of topics that loom large in contemporary ethical discourse.​

This book examines the institutional dimension of markets and the rules and institutions that condition the operation of market economies.

Using an analysis which draws on economics, law, moral philosophy, sociology and political science, Vanberg demonstrates how the rules and institutions which are the basis of cooperation in society can be systematically explained.