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The limits of liberalism: Good boundaries must be discovered

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  • Adam Martin

    (Texas Tech University)

Abstract

Determining good boundaries for governance jurisdictions is among the most difficult problems in political theory and political philosophy. But to whom the rules of a given jurisdiction applies is a problem that afflicts private as well as public governance. Clubs have boundaries no less than cities, states, or nations. This essay applies Hayek’s conception of competition as a discovery procedure to boundary problems, arguing that good jurisdictional boundaries are subject to a great deal of contingent variation according to particular the conditions of time and place. Philosophical speculation, therefore, cannot fully replace a trial and error process that facilitates social learning about where good boundaries fall. I outline the features of good boundaries that make them subject to such variation, then evaluate two criteria for evaluating whether existing jurisdictional boundaries are good: one that emphasizes ex ante consent to boundaries, and one that focuses on the ability of individuals to exit from jurisdictions ex post, arguing that the exit-focused approach is underappreciated.

Suggested Citation

  • Adam Martin, 2018. "The limits of liberalism: Good boundaries must be discovered," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 31(2), pages 265-276, June.
    • Handle: RePEc:kap:revaec:v:31:y:2018:i:2:d:10.1007_s11138-017-0381-4
    DOI: 10.1007/s11138-017-0381-4
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    References listed on IDEAS

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    1. James M. Buchanan, 1962. "Politics, Policy, and the Pigovian Margins," Palgrave Macmillan Books, in: Chennat Gopalakrishnan (ed.), Classic Papers in Natural Resource Economics, chapter 10, pages 204-218, Palgrave Macmillan.
    2. Stringham, Edward Peter, 2015. "Private Governance: Creating Order in Economic and Social Life," OUP Catalogue, Oxford University Press, number 9780199365166.
    3. Richard E. Wagner, 2007. "Fiscal Sociology and the Theory of Public Finance," Books, Edward Elgar Publishing, number 12713.
    4. 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.
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    Cited by:

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    2. Larry Eubanks & Glenn L. Furton, 2024. "The institutional structure of pollution: large-scale externalities and the common law," Public Choice, Springer, vol. 201(3), pages 429-450, December.

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