The Wealth of Nations: A Further Inquiry into its Nature and Causes
31 Pages Posted: 17 Jul 2019
Date Written: July 17, 2019
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: Suggested Citation