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An Economic Theory of the Evolution of Governance and the Emergence of the State

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  • Benson, Bruce L

Abstract

Individual's desires to expand wealth in the face of scarcity underlie the evolution of rules and institutions of governance, as individuals attempt to reduce the transactions costs that impede coordination and motivation in an uncertain world. Some wealth-seeking individuals have or develop comparative advantages in violence, however, and behavioral rules and governing institutions may evolve to coordinate joint production of extortion too. The process by which such institutions evolve into a state is discussed. To illustrate the plausibility of this theory, various historical and modern state and non-state governance institutions are shown to be consistent with it. Copyright 1999 by Kluwer Academic Publishers

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  • Benson, Bruce L, 1999. "An Economic Theory of the Evolution of Governance and the Emergence of the State," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 12(2), pages 131-160, November.
    • Handle: RePEc:kap:revaec:v:12:y:1999:i:2:p:131-60
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    Citations

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    Cited by:

    1. Mehrdad Vahabi, 2020. "Introduction: a symposium on the predatory state," Public Choice, Springer, vol. 182(3), pages 233-242, March.
    2. Darcy W E Allen, 2020. "When Entrepreneurs Meet:The Collective Governance of New Ideas," World Scientific Books, World Scientific Publishing Co. Pte. Ltd., number q0269, June.
    3. François Facchini, 2005. "L'ordre de marché comme croyance," Post-Print hal-00433088, HAL.
    4. Benson Bruce L., 2000. "Jurisdictional Choice in International Trade: Implications for Lex Cybernatoria," Journal des Economistes et des Etudes Humaines, De Gruyter, vol. 10(1), pages 1-30, March.
    5. Leeson,Peter T., 2014. "Anarchy Unbound," Cambridge Books, Cambridge University Press, number 9781107629707.
    6. Jean-Michel Josselin & Alain Marciano, 2002. "The Making of the French Civil Code: An Economic Interpretation," European Journal of Law and Economics, Springer, vol. 14(3), pages 193-203, November.
    7. Peter J. Boettke & Rosolino A. Candela, 2020. "Productive specialization, peaceful cooperation and the problem of the predatory state: lessons from comparative historical political economy," Public Choice, Springer, vol. 182(3), pages 331-352, March.
    8. Judit Kapás & Pál Czeglédi, 2007. "Economic Freedom: Theory First, Empiricism After," ICER Working Papers 10-2007, ICER - International Centre for Economic Research.
    9. Paul R. Zimmerman, 2004. "State executions, deterrence, and the incidence of murder," Journal of Applied Economics, Universidad del CEMA, vol. 7, pages 163-193, May.
    10. Mehrdad Vahabi, 2016. "A positive theory of the predatory state," Public Choice, Springer, vol. 168(3), pages 153-175, September.
    11. Skarbek, David, 2012. "Prison gangs, norms, and organizations," Journal of Economic Behavior & Organization, Elsevier, vol. 82(1), pages 96-109.
    12. Bruce L. Benson, 2020. "The development and evolution of predatory-state institutions and organizations: beliefs, violence, conquest, coercion, and rent seeking," Public Choice, Springer, vol. 182(3), pages 303-329, March.
    13. Peter Boettke & Rosolino Candela, 2014. "Hayek, Leoni, and Law as the Fifth Factor of Production," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 42(2), pages 123-131, June.
    14. Francis Sun, 2017. "Relationship versus Transaction Marketing in China: An Institutional Approach," Business and Management Studies, Redfame publishing, vol. 3(2), pages 47-60, June.
    15. Bruce Benson, 2006. "Contractual nullification of economically-detrimental state-made laws," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 19(2), pages 149-187, June.
    16. François Facchini, 2006. "L’entrepreneur politique et son territoire," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-01286777, HAL.
    17. Bruce Benson, 2018. "The institutional determinants of self-governance: a comment on Edward Stringham’s Private Governance," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 31(2), pages 209-230, June.
    18. Bruce Benson, 1999. "To Arbitrate or To Litigate: That Is the Question," European Journal of Law and Economics, Springer, vol. 8(2), pages 91-151, September.
    19. Zimmerman, Paul R., 2004. "State executions, deterrence, and the incidence of murder," Journal of Applied Economics, Universidad del CEMA, vol. 7(1), pages 1-31, May.
    20. Candela, Rosolino A., 2020. "The political economy of insecure property rights: insights from the Kingdom of Sicily," Journal of Institutional Economics, Cambridge University Press, vol. 16(2), pages 233-249, April.
    21. Kapas Judit & Czegledi Pal, 2010. "Economic Freedom and Government: A Conceptual Framework," Journal des Economistes et des Etudes Humaines, De Gruyter, vol. 16(1), pages 1-26, October.
    22. Peter Leeson, 2007. "Efficient anarchy," Public Choice, Springer, vol. 130(1), pages 41-53, January.

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