Harmonization of Law

Harmonization of the law, in Europe and elsewhere, can be a theory driven process in which law and economics research (J.E.L. code K) can play an important role. With the example of a recent German case, the Waterpenny case, and an established piece of legislation, the Civil Code, it is shown how economic reasoning can enter into the process of jurisdiction, but also legislation. Broader lessons can be drawn from these studiesEconomics ;

Keynes's German Contenders 1932-1944: On the Sociology of Multiple Discoveries in Economics

In a pathbreaking study on some alleged anticipations of Keynes''s General Theory of Employment, Interest and Money, Don Patinkin in apparently applying Merton''s sociological approach to the problem of anticipations and multiples in economics, rejects Kalecki and the Stockholm School as anticipators. Patinkin''s contribution has a dual significance in improving our understanding of Keynesian economics, on the one hand, and in suggesting a novel approach to the sociology of economics on the other. This paper is concerned with Patinkin''s sociology. His approach by emphasizing the "central message" of a particular work, neglects the received sociological theory of knowledge in a way that compromises his entire investigation. This contention is illustrated by looking at Keynes''s German contenders. They had anticipated Keynesian theories and applied them in the years before the General Theory was published. Nevertheless, they rejected aspects of Keynesian economics after the appearanced the General Theory. True to his narrowly focussed approach, Patinkin could not analyze this body of work, which both anticipated and extended the General Theory. Keynes''s central message significantly differed from that of his contenders.public economics ;

MONEY AND ITS ECONOMIC AND SOCIAL FUNCTIONS

This essay tries to put Simmel’s Theory of Money into the context of current discussions in economics concerning money. The essay has three parts. Part I looks at the contribution of Georg Simmel in its context, and offers remarks about the changing structure of economics as a discipline composed of many different sub-disciplines. It is argued that Simmel is able to transcend sub-disciplinary borders, and to great benefit for today''s scholar. Secondly, a recent contribution to monetary economics is explained in transactions and property rights terms, since that is the only way to comprehend it and integrate it into the main stream of scholarly discourse, although the contribution has been made more in the context of post-Keynesian economics. Again, it appears that Simmel’s approach of transgressing inner disciplinary borders has merits even today. Thirdly, the perplexing phenomenon of European monetary integration is looked at with a similar perspective in mind. Here, the unifying concept is not monetary economics but constitutional political economy as the main cause to explain the peculiar features of European monetary integration.monetary economics ;

Subsidiarity as a Constitutional Principle in Environmental Policy

The principle of subsidiarity has become more widely known with its prominent adoption in the Maastricht Treaty. The principle is, however, deeply embedded in the history of political economy, notably in the continental European tradition. In this tradition, it has the status of a principle in constitutional political economy, i.e. it is a principle that affects policy design as opposed to policy choice. This article emphasizes the constitutional political economy aspect of the principle and illustrates its usefulness with respect to environmental policy design.public economics ;

Incentive Taxation and Sustainable Growth in the Third World: The Case of Tehran

The judicious use of natural resources is a crucial prerequisite for sustainable growth not only in developed countries, but even more so in the Third World. To a substantial degree, natural resource use is determined by the tax structure governing a country''s economic activity. When a tax constitution can be designed which stimulates the judicious use of natural resources, an important step towards achieving sustainable growth has been made. Designing such a constitution is not a simple task, however. For third world countries, the task is further complica ted by at least three factors. On the one hand, the tax system has to be exceedingly simple, since both number and quality of tax instruments available to third world governments tend to be limited. Secondly, the legal system tends to mirror the state of economic development. This limits not only the tax structure an economy can bear; it also limits a government''s ability to regulate natural resource use by legal means. Thirdly, the more elaborate a legal system, the more diversity it affords its country for economic activity, including opportunities for the division of labour. The essay has eight sections. It starts with the discussion of the use of the environment and the natural resource endowment from the point of view of public finance theory. This point of departure is central, as it serves to identify the net product (le produit net) of economic activity after full consideration of the use of natural resources in the process of production. From this point of view, the question of what constitutes spillover effects or externalities in a market economy can be seen in the broad public finance perspective developed in section two. Section three discusses some standard problems in designing a tax constitution for a third world country. Section four explores possibilities for creating a framework in which the sustainable use of the natural resource endowment can take place. Central to the sustainable use is the notion that the environment has to be put to different uses, which raises the issue of the reversal of use dealt with in section five. The possibilities of ensuring reversibility of the use of natural resources is discussed in section six and a specific procedure is developed which is designed to ensure that reversibility of use can be achieved with simple administrative means, i.e. means that are available to third world governing authorities. The essay ends with some concluding observations.economic development an growth ;

Incentive Taxation and Sustainable Growth in the Third World

The judicious use of natural resources is a crucial prerequisite for sustainable growth not only in developed countries, but even more so in the Third World. To a substantial degree, natural resource use is determined by the tax structure governing a country''s economic activity. When a tax constitution can be designed which stimulates the judicious use of natural resources, an important step towards achieving sustainable growth has been made. Designing such a constitution is not a simple task, however. For third world countries, the task is further complica ted by at least three factors. On the one hand, the tax system has to be exceedingly simple, since both number and quality of tax instruments available to third world governments tend to be limited. Secondly, the legal system tends to mirror the state of economic development. This limits not only the tax structure an economy can bear; it also limits a government''s ability to regulate natural resource use by legal means. Thirdly, the more elaborate a legal system, the more diversity it affords its country for economic activity, including opportunities for the division of labour. The essay has eight sections. It starts with the discussion of the use of the environment and the natural resource endowment from the point of view of public finance theory. This point of departure is central, as it serves to identify the net product (le produit net) of economic activity after full consideration of the use of natural resources in the process of production. From this point of view, the question of what constitutes spillover effects or externalities in a market economy can be seen in the broad public finance perspective developed in section two. Section three discusses some standard problems in designing a tax constitution for a third world country. Section four explores possibilities for creating a framework in which the sustainable use of the natural resource endowment can take place. Central to the sustainable use is the notion that the environment has to be put to different uses, which raises the issue of the reversal of use dealt with in section five. The possibilities of ensuring reversibility of the use of natural resources is discussed in section six and a specific procedure is developed which is designed to ensure that reversibility of use can be achieved with simple administrative means, i.e. means that are available to third world governing authorities. The essay ends with some concluding observations.economic development an growth ;

An economic analysis of constitutional law

Perhaps, the 1990''''s will be the decade of constitution writing. With many European States gaining their independence or reshaping their contours, new constitutions will be drawn up. Recent advances in the economic analysis of law can help to make this difficult task more feasible. This essay starts by giving an introduction into the economic analysis of constitutional law. Part I contains an analysis of constitutional guarantees of basic (individual) rights and procedures, illustrated with three constitutions, the American constitution of 1789 as amended in 1792, the German Basic Law of 1949 and the Dutch Basic Law of 1983. Although constitutions are meant to be permanent, they continuously change without amendment. Part II offers an analysis of constitutional change without amendment. Whoever wants to draft a constitution needs to know how the basic guarantees work, how procedural rules interconnect basic guarantees and decision takers, and what chances there are that the meaning of a constitutional provision can be turned upside down. Economic analysis of constitutions speaks to these three problems.public economics ;

Land Value Taxation in Germany: Theoretical and Historical Issues

Land value taxation in Germany has a long history pre-dating and post-dating Henry George''s own influence. Some of the ideas Henry George stood for had already taken root in German practice before him, and when his books began to appear almost simultaneously with their American editions in Germany, a German intellectual and political movement began to emerge rallying around the issue of land reform. In this essay, first the intellectual roots of Georgist ideas in German literature are being retraced. Secondly, the practice of land value taxation, or more precisely land added value taxation is being described. The core of Henry George''s ideas, however, is embodied not in the legislation on land added value taxation, but rather appended to the income tax code. This is the topic of the third section. Since the interplay between German income tax legislation and investment decisions is hard to grasp for the uninitiated from a purely theoretical discussion, an example is being analyzed in the fourth section in order to illustrate how this AGeorgist@ system of taxation operates in practice.Economics ;

Hedging Against Catastrophic Risk; On Financing Large Infrastructure Projects

In drawing on modern finance theory, this note demonstrates the importance of financial instruments for large public sector projects. An explicit link to the theory of Henry George is made, and a public sector financing approach is being demonstrated by using the example of the Oder floodings in 1997. While the main thrust of the proposal lies on physically containing the risk of future floodings, the role of the insurance industry and bringing the solution about is also explicitly considered.Economics ;

Land Rents and Ecological Management: A Note on the River Oder in 1997

In drawing on modern finance theory, this note demonstrates the importance of financial instruments for large public sector projects. An explicit link to the theory of Henry George is made, and a public sector financing approach is being demonstrated by using the example of the Oder floodings in 1997.financial economics and financial management ;