The Inverse Coase Theorem and Declarations of War
5 Pages Posted: 19 Dec 2001
Monitoring costs are reduced, and political accountability enhanced, by prohibiting bargains that alter the Constitution's formal allocation of rights of decision among political actors. One might describe this proposition as the Inverse Coase Theorem. This framework is used to examine the purpose served by the constitutional formality inherent in a declaration of war.
JEL Classification: K00, K10, K19, K30, K39
Suggested Citation: Suggested Citation