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The Distinction between Clubs and Governments

Randall Holcombe

Chapter 5 in The Economic Foundations of Government, 1994, pp 72-91 from Palgrave Macmillan

Abstract: Abstract The economic model of government is based on exchange. Individuals find it in their mutual self-interests to create constitutions that define individual rights and the limits of government power, and to grant governments the means to monitor and enforce the structure of rights defined by the constitution. While based on exchange, the model differs from what has sometimes been referred to as the exchange model of government because threats as well as promises could be used to encourage the observation of rights, so the resulting government could be forced upon some individuals.1 The use of the word force is not unambiguous in this context, however, especially in light of the contractarian model of the state. In what sense might people be said to be in agreement with the constitution under which they are governed? Looked at in another way, clubs might be thought of as institutions that their members voluntarily agree to join, whereas people are forced to abide by the rules of their governments whether or not they agree. What distinguishes a club from a government?

Keywords: Municipal Government; Constitutional Rule; Economic Foundation; Coercive Power; Social Contract Theory (search for similar items in EconPapers)
Date: 1994
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Citations: View citations in EconPapers (5)

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DOI: 10.1007/978-1-349-13230-0_5

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