An enabling mechanism for the creation, adjustment, and dissolution of states and governmental units

The article proposes an enabling mechanism for the creation, adjustment and dissolution of governmental units, giving autonomy to each individual as in a direct democracy. The mechanism is designed such that Pareto optimality is possible, in contrast to earlier models which make various assumptions...

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Veröffentlicht in:Economics. The open-access, open-assessment e-journal open-assessment e-journal, 2010-11, Vol.4 (32), p.1-38
Hauptverfasser: Hausken, Kjell, Knutsen, John F
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container_title Economics. The open-access, open-assessment e-journal
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creator Hausken, Kjell
Knutsen, John F
description The article proposes an enabling mechanism for the creation, adjustment and dissolution of governmental units, giving autonomy to each individual as in a direct democracy. The mechanism is designed such that Pareto optimality is possible, in contrast to earlier models which make various assumptions such as majority voting. Individuals are taken seriously acknowledging that they are best equipped to find their own solutions. The emphasis is on the practical approach of how individuals discover and implement their subjective preferences and how this discovery and implementation process can be facilitated and corresponding costs lowered. Governmental units are subjected to some of the same market forces as business firms. This brings the interaction between governmental units closer to a market structure, and serves to eliminate or reduce many of the coercive elements of government.
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source RePEc; Business Source Complete; Directory of Open Access Journals; Alma/SFX Local Collection; EZB Electronic Journals Library
subjects Competition
competitive markets
constitutional economics
Costs
Decision making
Democracy
endogenous determination of borders
governmental units
individual decision making
individual liberty
individual wel-fare
Market structure
Minority & ethnic groups
Pareto optimum
Political economy
Population
public choice
Robbery
Securities markets
States
Studies
Territorial units
title An enabling mechanism for the creation, adjustment, and dissolution of states and governmental units
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