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1 results

  • 22 - Economic Aspects

  • from Part IV - Effects
  • Wim Voermans, Universiteit Leiden
  • Book:
    The Story of Constitutions
    Published online:
    19 October 2023
    Print publication:
    02 November 2023, pp 258-269

  • Summary

    In this chapter economic aspects of constitutions are explored. Basically there are three. Constitutions, firstly, act as a condition for markets and the overall economy: they are, most of the time, criticial preconditions for economic development by the - predictable - laws they generate and the protection they offer for property and capital). Secondly constitutions act as a factor in markets and the economy. They, for instance, lower transaction costs. And. thirdly, constitutions act as a catalyst in economic relations, e.g. by boosting mutual trust.