National Theory: Economic Rights, Legal Rights, and the Scope of the State

Author: Yoram Barzel (USA)
Publisher:
Publishing Date: Not available
Features: This book models the birth of nations and the forces that shape them. The origin of states stems from the need for protection. Professional protectors—rulers—are efficient and self-interested. Rulers are only equipped when individuals create mechanisms to control them. The branches of organized protection give rise to legal systems and decision-making procedures (including voting). Thus, the initial "natural state" gradually evolves into a rule-of-law state. The state grants individuals rights by defining the scope of protection. However, implementation is never perfect. People also use other third parties—such as businesses—to enforce agreements. The combination of implementation methods chosen in practice determines the scale of state policies and national characteristics. As products become standardized, the economies of scale in contracting also increase. We argue that states expand their contracting enforcement domain through treaties or conquest to exploit the economies of scale in domestic implementation. The demand to expand the contracting enforcement domain also explains the rise of rule-of-law empires.
Yoram Barzel graduated from the Hebrew University and the University of Chicago. Since 1967, he has been teaching at the University of Washington, where he is a professor of economics. His research spans applied price theory, property rights economics, and has recently shifted to political economy. His recent research focuses on the birth of nations, with his models applied to medieval England and France. He has published numerous articles in major economics journals, and in 1995, his papers were included in Edward Elgar Publishing's series "20th-Century Economists." His book Economic Analysis of Property Rights (Cambridge University Press) has been released in its second edition. Professor Barzel is the president of the Western Economic Association.