Encyclopedia of Law and Economics

Living Edition
| Editors: Alain Marciano, Giovanni Battista Ramello

Rule of Law

  • Rosolino A. CandelaEmail author
  • Ennio Piano
Living reference work entry
DOI: https://doi.org/10.1007/978-1-4614-7883-6_421-1

Abstract

This entry explores the role of the rule of law in a market economy. The emergence of the rule of law is a precondition of not only political and economic liberty but also economic growth and overall human progress. The presence, or lack thereof, of the rule of law determines whether human interaction will be positive-sum or negative-sum in nature. We explore first the fundamental attributes to the rule of law in relation to property rights and entrepreneurship. Second, we discuss in detail three attributes to the rule of law that generate this productive entrepreneurial process: (1) generality, (2) predictability, and (3) equality.

This is a preview of subscription content, log in to check access.

References

  1. Baumol WJ (1990) Entrepreneurship: productive, unproductive, and destructive. J Polit Econ 98(5):893–921CrossRefGoogle Scholar
  2. Boettke PJ, Candela R (2014a) Hayek, Leoni, and law as the fifth factor of production. Atl Econ J 42(2):123–131CrossRefGoogle Scholar
  3. Boettke PJ, Candela RA (2014b) Development and property rights. In: Marciano A, Ramello GB (eds) Encyclopedia of law and economics. Springer, New YorkGoogle Scholar
  4. Boettke PJ, Piano E (2016) Baumol’s productive and unproductive entrepreneurship after 25 years. J Entrep Public Policy 5(2):130–144Google Scholar
  5. Harnay S, Marciano A (2011) Seeking rents through class actions and legislative lobbying: a comparison. Eur J Law Econ 32(2):293–304CrossRefGoogle Scholar
  6. Hayek FA (1944 [1994]) The road to Serfdom, 50th anniversary edition. University of Chicago Press, ChicagoGoogle Scholar
  7. Hayek FA (1960) The constitution of liberty. University of Chicago Press, ChicagoGoogle Scholar
  8. Kirzner IM (1973) Competition & entrepreneurship. University of Chicago Press, ChicagoGoogle Scholar
  9. Levinson M (2006) The box: how the shipping container made the world smaller and the world economy bigger. Princeton University Press, PrincetonGoogle Scholar
  10. Marciano A (2016) Economic analysis of law. In: Marciano A, Ramello GB (eds) Encyclopedia of law and economics. Springer, New YorkGoogle Scholar
  11. Mises L (1920 [1975]) Economic calculation in the socialist commonwealth. In: Hayek FA (ed) Collectivist economic planning. August M. Kelley, CliftonGoogle Scholar
  12. Murphy KM, Shleifer A, Vishny RW (1991) The allocation of talent: implications for growth. Q J Econ 106(2):503–530CrossRefGoogle Scholar
  13. Tullock G (1967) The welfare costs of tariffs, monopolies, and theft. West Econ J 5(3):224–232Google Scholar
  14. Wagner RE (2016) Gordon Tullock: a Maverick scholar of law and economics. In: Marciano A, Ramello GB (eds) Encyclopedia of law and economics. Springer, New YorkGoogle Scholar

Copyright information

© Springer Science+Business Media LLC 2018

Authors and Affiliations

  1. 1.Political Theory ProjectBrown UniversityProvidenceUSA
  2. 2.Department of EconomicsGeorge Mason UniversityFairfaxUSA