The Applied Theory of the Bourgeois Era: A Price-Theoretic Perspective

Journal of Contextual Economics – Schmollers Jahrbuch, forthcoming

17 Pages Posted: 23 Nov 2020 Last revised: 6 Dec 2021

See all articles by Peter J. Boettke

Peter J. Boettke

George Mason University - Department of Economics; Mercatus Center at George Mason University

Rosolino Candela

George Mason University - Mercatus Center

Multiple version iconThere are 2 versions of this paper

Date Written: November 21, 2020

Abstract

What can we learn about applied price theory from the Bourgeois Era? In this paper, we contend there are three important lessons that can be extracted from McCloskey’s work on the Great Enrichment. First, transaction costs are not constraints, but objects of choice. Second, property rights are not merely a “bundle of sticks,” in that private property rights make exchange possible, but a culture of liberal ideas makes exchange viable. Third, ideas conducive to liberalism give rise to generalized increasing returns to the scope, rather than scale, of market exchange, which generated the Great Enrichment

JEL Classification: A23; B53; O43; P16

Suggested Citation

Boettke, Peter J. and Boettke, Peter J. and Candela, Rosolino, The Applied Theory of the Bourgeois Era: A Price-Theoretic Perspective (November 21, 2020). Journal of Contextual Economics – Schmollers Jahrbuch, forthcoming, Available at SSRN: https://ssrn.com/abstract=3735102 or http://dx.doi.org/10.2139/ssrn.3735102

Peter J. Boettke (Contact Author)

George Mason University - Department of Economics ( email )

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Mercatus Center at George Mason University ( email )

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Rosolino Candela

George Mason University - Mercatus Center ( email )

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Arlington, VA 22201
United States

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