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2017 | OriginalPaper | Buchkapitel

8. Facing Crises: Economy, Democracy, and Political Transaction Costs

verfasst von : Claude Ménard

Erschienen in: Democracy and an Open-Economy World Order

Verlag: Springer International Publishing

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Abstract

The groveling crisis that plagues Greece and that is deeply embedded in the European crisis, which is itself rooted in a more global setting of economic and political crises, reveals the complexity of the relationship between economy and democracy. It also shows how fragile both are and how deeply entrenched in politics are the questions raised and the solutions proposed.

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Fußnoten
1
For a pioneering approach, see North (1990) and Marshall and Weingast (1988).
 
2
See Hirschman (1970) for a great analysis of the role of ‘voice’ as opposed to ‘exit’ in making decisions acceptable and implementable.
 
3
For pioneering contributions on these aspects, see North (1990), Ostrom (2005), Greif (2006), Acemoglu and Robinson (2012), and Menard (2014), among others.
 
4
Initially I used the concept of ‘micro-institutions’ (Menard 2008; De Mariz et al. 2013; Menard 2014) which was rightly pointed out by several discussants as a potential source of confusion with those organizations at the core of micro-economics (e.g., firms, networks). I consider these comments relevant: hence the change in wording.
 
5
Some participants to the conference also pointed out, I think rightly so, that whether it is a bi-partisan system or a multi-parties system also makes a difference.
 
6
However there is the risk of drawbacks, for example delegation may feed local corruption. This raises the issue of the desirable degree of delegation and the type of control mechanisms needed.
 
7
According to these authors, external costs are nil under unanimity rule since each participant can block any unfavorable decision, positive under majority rules since minorities might end up with a worst situation than under status quo, and reach a maximum under “dictatorship or unique control.”
 
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Metadaten
Titel
Facing Crises: Economy, Democracy, and Political Transaction Costs
verfasst von
Claude Ménard
Copyright-Jahr
2017
DOI
https://doi.org/10.1007/978-3-319-52168-8_8