Abstract

https://ssrn.com/abstract=2394097
 


 



Hayek, Leoni, and Law as the Fifth Factor of Production


Peter J. Boettke


George Mason University - Department of Economics

Rosolino A. Candela


George Mason University

February 11, 2014

Atlantic Economic Journal 42(2):123-131

Abstract:     
This paper discusses the nature of law as the fifth factor of production, or more fundamentally as the institutional framework within which the production process takes place. Unlike land, labor, capital and entrepreneurship, whose coordination is an outcome of institutional arrangements, the law itself is the institutional embodiment of the voluntary exchange processes evolving from the decisions, but not the design, of judges that form the reliable expectations about who 'plans' the coordination of the other four factors of production. The legal theory of Hayek and Leoni lends itself to this dual nature of spontaneous order analysis and also the basis of the burgeoning literature on analytical anarchism. Although Hayek and Leoni were not legal centralists, their conception of law as part of a larger spontaneous order was open-ended to competition and experimentation on the constitutional level of rules just as that experienced on the post-constitutional level of the market itself.

Number of Pages in PDF File: 9

Keywords: Legal Institutions, Developmental State, Comparative economic systems

JEL Classification: K4, O12, P51


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Date posted: February 12, 2014 ; Last revised: February 28, 2016

Suggested Citation

Boettke, Peter J. and Candela, Rosolino A., Hayek, Leoni, and Law as the Fifth Factor of Production (February 11, 2014). Atlantic Economic Journal 42(2):123-131 . Available at SSRN: https://ssrn.com/abstract=2394097

Contact Information

Peter J. Boettke
George Mason University - Department of Economics ( email )
4400 University Drive
Fairfax, VA 22030
United States
703-993-1149 (Phone)
703-993-1133 (Fax)
Rosolino A. Candela (Contact Author)
George Mason University ( email )
4400 University Drive
Fairfax, VA 22030
United States
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