The Logical Arguments for Constitutional Democracy Peter J. Boettke Econ 828/Fall 2005 17 October

Main Methodological Points to Emphasize Methodological Individualism Catallactic Model of Politics Normative Implications for a society of free men

Tension Between Buchanan and Tullock More philosophical and subtle Subjectivism Men are not just rats Normative individualism Tullock Relies on observation to drive questions Homo-economicus Natural economist Normative bent is there, but not overt

The contribution to political philosophy and political economy Social Choice Theory Impossibility Theorem and its Import and Irrelevance Decisions within Rules and Decisions over the rules Veil of uncertainty construction Costs of Decision Making Unanimity principle Externality principle Bargaining within Politics Log rolling, Pareto Improvements and Perversities Fiscal Structure Federalism and political competition (industrial organization of government)

Central Diagram of the Calculus of Consent Cost Costs Decision Making Costs Externality Costs % of Agreement Voting Rule

Buchanan’s Broader Contribution 1986 Nobel Prize for the economic theory of politics Buchanan as an ‘Austrian’ and ‘classical liberal’ Buchanan and the rebirth of political economy

Contract or Coordination: The Contribution of Russell Hardin Coercion, Exchange, Coordination Shared values are neither a necessary nor sufficient condition for coordination in a complex society “Liberalism, constitutionalism and democracy work for us because we are coordinated enough on various matters.” p. 17 Conflicting nature of economic (practice in search of a theory) and political liberalism (theory in search of a practice) Constitutions not as contracts, but as coordinative institutions which enable us to pursue mutual advantage and realize our interests (from Hobbes to Hume) http://www.nyu.edu/gsas/dept/politics/faculty/hardin/hardin_home.html

Conclusion The Calculus of Consent established more than any other book the usefulness of applying economic concepts to address questions in political theory and political science The Calculus of Consent demonstrated that pursuing the logic of individual choice and the benefits of exchange model provided a coherent argument for limited government that did not rely on rights-speak