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The Applied Theory of the Bourgeois Era: A Price-Theoretic Perspective

The Applied Theory of the Bourgeois Era: A Price-Theoretic Perspective
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Year:    2020

Author:    Boettke, Peter J., Candela, Rosolino A.

Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 140 (2020), Iss. 3-4 : pp. 355–366

Abstract

What can we learn about applied price theory from the Bourgeois Era? In this paper, we contend there are three important lessons that can be extracted from McCloskey’s work on the Great Enrichment. First, transaction costs are not constraints, but objects of choice. Second, property rights are not merely a “bundle of sticks,” in that private property rights make exchange possible, but a culture of liberal ideas makes exchange viable. Third, ideas conducive to liberalism give rise to generalized increasing returns to the scope, rather than scale, of market exchange, which generated the Great Enrichment.

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Journal Article Details

Publisher Name:    Global Science Press

Language:    English

DOI:    https://doi.org/10.3790/schm.140.3-4.355

Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 140 (2020), Iss. 3-4 : pp. 355–366

Published online:    2020-07

AMS Subject Headings:    Duncker & Humblot

Copyright:    COPYRIGHT: © Global Science Press

Pages:    12

Keywords:    A23 B53 O43 P16 Bourgeois Era Culture Deirdre McCloskey Price Theory Property Rights Transaction Costs

Author Details

Boettke, Peter J.

Candela, Rosolino A.

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Section Title Page Action Price
Peter J. Boettke/Rosolino A. Candela: The Applied Theory of the Bourgeois Era: A Price-Theoretic Perspective 355
Abstract 355
Introduction 356
1. Transaction Costs Are Not Constraints, but Objects of Choice 358
2. Property Rights are Not Merely a “Bundle of Sticks” 360
3. Ideas Give Rise to Generalized Increasing Returns 362
4. Conclusion 363
References 355