TY - JOUR
T1 - Private Governance and the Pricing of Political Enterprises
AU - Furton, Glenn L.
AU - Salter, Alexander William
N1 - Publisher Copyright:
© 2017 Walter de Gruyter GmbH, Berlin/Boston 2017.
Copyright:
Copyright 2017 Elsevier B.V., All rights reserved.
PY - 2017
Y1 - 2017
N2 - Austrian economists are perhaps most well-known for developing the theory of the market process - how producers and consumers, guided by market prices, are able to coordinate their actions over time. In this paper we extend Austrian insights to the provision of fundamental governance goods. It is typically thought that such goods, because of their publicness, cannot be provided by market mechanisms. We argue orthodox public finance and political economy is mistaken in this regard. The market process applied to governance goods, which we call political pricing is capable of creating governance environments conducive to a high degree of social cooperation under the division of labor. We highlight some problems with orthodox public finance and political economy approaches, theoretically develop a market process approach to governance, and discuss two examples of such mechanisms in creating wealth.
AB - Austrian economists are perhaps most well-known for developing the theory of the market process - how producers and consumers, guided by market prices, are able to coordinate their actions over time. In this paper we extend Austrian insights to the provision of fundamental governance goods. It is typically thought that such goods, because of their publicness, cannot be provided by market mechanisms. We argue orthodox public finance and political economy is mistaken in this regard. The market process applied to governance goods, which we call political pricing is capable of creating governance environments conducive to a high degree of social cooperation under the division of labor. We highlight some problems with orthodox public finance and political economy approaches, theoretically develop a market process approach to governance, and discuss two examples of such mechanisms in creating wealth.
KW - Austrian economics
KW - D23
KW - Dubaimarket process
KW - H11
KW - P16
KW - Political pricing
KW - Private governance, Singapore JEL classification: B53
UR - http://www.scopus.com/inward/record.url?scp=85026665239&partnerID=8YFLogxK
U2 - 10.1515/jbvela-2016-0013
DO - 10.1515/jbvela-2016-0013
M3 - Article
AN - SCOPUS:85026665239
VL - 12
JO - Journal of Business Valuation and Economic Loss Analysis
JF - Journal of Business Valuation and Economic Loss Analysis
SN - 1932-9156
IS - s1
M1 - 20160013
ER -