EconPapers    
Economics at your fingertips  
 

INTERVENTIONISM: AN ECONOMIC ANALYSIS OF PRICELESS RESOURCE ALLOCATION

Matei Alexandru Apavaloaei ()
Additional contact information
Matei Alexandru Apavaloaei: Bucharest University of Economic Studies, Romania

Scientific Bulletin - Economic Sciences, 2015, vol. 14, issue 1, pages 21-29

Abstract: The present paper is going to build upon the Misesian theory of interventionism by presenting it in the light of property economics. We will argue that all forms of government interfere with the workings of the market can be counterfactually analysed by contrasting them with the voluntary order of laissez-faire capitalism. Interventionism is presented as a partial order, situated on the continuum between laissez-faire capitalism and socialism. The article argues that the limits of interventionism can be understood as a direct consequence of its functioning under the aegis of fiat property. Because the state can unilaterally decide the extent to which an individual is entitled to his private property (involuntary co-ownership), interventionism replaces the rational entrepreneurial order of the free market, which is constrained by the price structure and is directed by economic calculation, with the arbitrary value judgments of a single entity. This more general re-statement of the Misesian theory of interventionism from the point of view of property economics has the benefit of covering all possible policy measures while deducing the implications from an a priori perspective. From a methodological standpoint, this approach provides a more realist account of the implications of government involvement in the workings of the market as it does not require any unrealistic assumptions like: perfect information, equilibrium and dead weight loss comparison, or postulate a certain type of behaviour - benevolence, narrow self-interest or ideological error.

Keywords: Property economics; interventionism; fiat property. (search for similar items in EconPapers)
JEL-codes: B53 P16 P48 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed

Downloads: (external link)
http://economic.upit.ro/repec/pdf/2015_1_3.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:pts:journl:y:2015:i:1:p:21-29

Access Statistics for this article

Scientific Bulletin - Economic Sciences is currently edited by Logica Banica

More articles in Scientific Bulletin - Economic Sciences from University of Pitesti Contact information at EDIRC.
Series data maintained by Logica Banica ().

 
Page updated 2015-10-07
Handle: RePEc:pts:journl:y:2015:i:1:p:21-29