Capitalism has outperformed all other systems and maintained a positive growth rate since it began. Svetozar Pejovich makes the case within this book that a major reason for the success of capitalism lies in the efficiency-friendly incentives of its basic institutions, which continuously adjust the rules of the game to the requirements of economic progress. The analysis throughout is consistent and is supported by evidence. Key components of the proposed theory are the rule of law, the market for institutions, the interaction thesis, the carriers of change, and the process of changing formal and informal institutions. This book will be of great interest to academics and students of law and economics, new institutional economics, comparative systems and public choice throughout the world and especially in East Asia and South America where institutional issues are being debated.

This short book offers a rigorous yet user-friendly introductory guide for students who need to grasp the essential concepts of economics quickly. It provides a serious, clearly understandable and systematic account of the key elements of economics, with a focus on theory and principles. The Economics You Need provides the ideal introduction for students approaching economics from other academic disciplines, as it uses only a limited amount of economics jargon, and is constructed so that several chapters can be read independently of the others. This book is structured around the premise that a set of theoretical steps are necessary for understanding economics as a way of thinking, rather than as a set of solutions. It also encourages the reader to consider alternatives to common assumptions, to acknowledge the need for value judgements and to foster fresh thinking in an imperfect world. This engaging primer will be essential reading not only for students of economics, but also for students with a background in disciplines such as politics, international relations and business studies.

Free-market economics has attempted to combine efficiency and freedom by emphasizing the need for neutral rules and meta-rules. These efforts have only been partly successful, for they have failed to address the deeper, normative arguments justifying - and limiting - coercion. This failure has thus left most advocates of free-market vulnerable to formulae which either emphasize expediency or which rely upon optimal social engineering to foster different notions of the common will and of the common good. This book offers the reader a new perspective on free-market economics, one in which the defense of markets is no longer based upon the utilitarian claim that free markets are more efficient; rather, the defense of markets rests upon the moral argument that top-down coercive policy-making is necessarily in tension with the rights-based notion of justice typical of the Western tradition. In arguing for a consistent moral basis for the free-market view, we depart from both the Austrian and neoclassical traditions by acknowledging that rationality is not a satisfactory starting point. This rejection of rationality as the complete motivator for human economic behaviour throws constitutional economics and the law-and-economics tradition into new relief, revealing these approaches as governed by considerations derived by various notions of social efficiency, rather than by principles consistent with individual freedom, including freedom to choose. This book shows that the solution is in fact a better understanding of the lessons taught by the Scottish Enlightenment: the role of the political context is to ensure that the individual can pursue his own ends, free from coercion. This also implies individual responsibility, respect for somebody else's preferences and for his entrepreneurial instincts. Social virtue is not absent from this understanding of politics, but rather than being defined through the priorities of policy-makers, it emerges as the outcome of interaction among self-determining individuals. The strongest and most consistent case for free-market economics, therefore, rests on moral philosophy, not on some version of static-efficiency theorizing. This book should be of interest to students and researchers focussing on economic theory, political economics and the philosophy of economic thought, but is also written in a non-technical style making it accessible to an audience of non-economists.

Free-market economics has attempted to combine efficiency and freedom by emphasizing the need for neutral rules and meta-rules. These efforts have only been partly successful, for they have failed to address the deeper, normative arguments justifying - and limiting - coercion. This failure has thus left most advocates of free-market vulnerable to formulae which either emphasize expediency or which rely upon optimal social engineering to foster different notions of the common will and of the common good. This book offers the reader a new perspective on free-market economics, one in which the defense of markets is no longer based upon the utilitarian claim that free markets are more efficient; rather, the defense of markets rests upon the moral argument that top-down coercive policy-making is necessarily in tension with the rights-based notion of justice typical of the Western tradition.

In arguing for a consistent moral basis for the free-market view, we depart from both the Austrian and neoclassical traditions by acknowledging that rationality is not a satisfactory starting point. This rejection of rationality as the complete motivator for human economic behaviour throws constitutional economics and the law-and-economics tradition into new relief, revealing these approaches as governed by considerations derived by various notions of social efficiency, rather than by principles consistent with individual freedom, including freedom to choose.

This book shows that the solution is in fact a better understanding of the lessons taught by the Scottish Enlightenment: the role of the political context is to ensure that the individual can pursue his own ends, free from coercion. This also implies individual responsibility, respect for somebody else's preferences and for his entrepreneurial instincts. Social virtue is not absent from this understanding of politics, but rather than being defined through the priorities of policy-makers, it emerges as the outcome of interaction among self-determining individuals. The strongest and most consistent case for free-market economics, therefore, rests on moral philosophy, not on some version of static-efficiency theorizing.

This book should be of interest to students and researchers focussing on economic theory, political economics and the philosophy of economic thought, but is also written in a non-technical style making it accessible to an audience of non-economists.

This short book offers a rigorous yet user-friendly introductory guide for students who need to grasp the essential concepts of economics quickly. It provides a serious, clearly understandable and systematic account of the key elements of economics, with a focus on theory and principles. The Economics You Need provides the ideal introduction for students approaching economics from other academic disciplines, as it uses only a limited amount of economics jargon, and is constructed so that several chapters can be read independently of the others. This book is structured around the premise that a set of theoretical steps are necessary for understanding economics as a way of thinking, rather than as a set of solutions. It also encourages the reader to consider alternatives to common assumptions, to acknowledge the need for value judgements and to foster fresh thinking in an imperfect world. This engaging primer will be essential reading not only for students of economics, but also for students with a background in disciplines such as politics, international relations and business studies.

Capitalism has outperformed all other systems and maintained a positive growth rate since it began. Svetozar Pejovich makes the case within this book that a major reason for the success of capitalism lies in the efficiency-friendly incentives of its basic institutions, which continuously adjust the rules of the game to the requirements of economic progress. The analysis throughout is consistent and is supported by evidence. Key components of the proposed theory are the rule of law, the market for institutions, the interaction thesis, the carriers of change, and the process of changing formal and informal institutions. This book will be of great interest to academics and students of law and economics, new institutional economics, comparative systems and public choice throughout the world and especially in East Asia and South America where institutional issues are being debated.

Economics is a matter of choice and growth, of interaction and exchange among individuals. Because property rights define the rules of these interactions and the objects of exchange, it is vital to fully understand the institutions and implications of the various property-rights regimes. With over 20 original and specially commissioned chapters, this book takes the reader from the historical and moral foundations of the discipline to the frontiers of scholarly research in the field. This Companion is both an introduction to the economics of property rights and a guide to help understand and analyse policy issues by making use of the powerful conceptual tools offered by this increasingly popular branch of economics. Following a comprehensive introduction by the editor, the book is divided in to three broad sections which examine the birth and evolution of property rights, investigate the relationship between property rights and the law, and explore contemporary economic issues from a property rights perspective. Together, the chapters in the book do not claim to offer a standard solution to the institutional questions raised by the property-rights issue. Instead, they present the theoretical tools and real-world examples needed to allow the reader to develop new ideas and evaluate existing problems. Non-technical in nature and including a distinguished list of authors from across the spectrum of economic thinking, The Elgar Companion to the Economics of Property Rights makes an invaluable contribution to the literature on economics, law, political science and public choice. For any serious scholar or student of these disciplines, this book will prove to be the ultimate reference companion.

Economics is a matter of choice and growth, of interaction and exchange among individuals. Because property rights define the rules of these interactions and the objects of exchange, it is vital to fully understand the institutions and implications of the various property-rights regimes. With over 20 original and specially commissioned chapters, this book takes the reader from the historical and moral foundations of the discipline to the frontiers of scholarly research in the field. This Companion is both an introduction to the economics of property rights and a guide to help understand and analyse policy issues by making use of the powerful conceptual tools offered by this increasingly popular branch of economics. Following a comprehensive introduction by the editor, the book is divided in to three broad sections which examine the birth and evolution of property rights, investigate the relationship between property rights and the law, and explore contemporary economic issues from a property rights perspective. Together, the chapters in the book do not claim to offer a standard solution to the institutional questions raised by the property-rights issue. Instead, they present the theoretical tools and real-world examples needed to allow the reader to develop new ideas and evaluate existing problems. Non-technical in nature and including a distinguished list of authors from across the spectrum of economic thinking, The Elgar Companion to the Economics of Property Rights makes an invaluable contribution to the literature on economics, law, political science and public choice. For any serious scholar or student of these disciplines, this book will prove to be the ultimate reference companion.