The Wealth of Nations: A Further Inquiry into its Nature and Causes

31 Pages Posted: 17 Jul 2019

See all articles by Yijiang Wang

Yijiang Wang

Cheung Kong Graduate School of Business

Date Written: July 17, 2019

Abstract

A new framework for understanding the wealth of nations is introduced. It focuses on the role of violence, and uses the involved parties’ relative capacity for violence as a unifying variable to explain how the wealth of nations is determined through the Hobbesian war or the Coasian bargain, how the Smithian market emerges from a violent world, and how a market-preserving government is created and preserved. The study reveals a common logic of various institutions. Its findings are consistent with the fact that the world is institutionally diverse and dynamic. They offer a new criterion for sound public policies.

Keywords: Relative Capacity for Violence, Wealth of Nations, Institutions, Government Types

JEL Classification: A1, B3, D0, H1, N0, P5

Suggested Citation

Wang, Yijiang, The Wealth of Nations: A Further Inquiry into its Nature and Causes (July 17, 2019). Available at SSRN: https://ssrn.com/abstract=3421222 or http://dx.doi.org/10.2139/ssrn.3421222

Yijiang Wang (Contact Author)

Cheung Kong Graduate School of Business ( email )

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One East Chang An Avenue
Beijing, 100738
China

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