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Constitutional Rules

Author

Listed:
  • Toke S Aidt
  • Francesco Giovannoni
Abstract
This paper proposes a normative theory of constitutional rules. The first-best cannot be achieved whenever constitutional rules cannot be made contingent on information about the costs and benefits of policy reforms. We characterize and welfare rank four classes of second best constitutions: constitutions that specify one rule for all types of decisions; constitutions that provide incentives for information about costs and benefits to be revealed; constitutions that allow for vetoes from interested parties and constitutions that specify different rules for different policy areas. In addition, we provide conditions for the existence of amendment rules that allow for changes to the original constitutional rules after the constitutional stage. Finally, we provide a new rationale for the existence of checks and balances.

Suggested Citation

  • Toke S Aidt & Francesco Giovannoni, 2004. "Constitutional Rules," The Centre for Market and Public Organisation 04/109, The Centre for Market and Public Organisation, University of Bristol, UK.
    • Handle: RePEc:bri:cmpowp:04/109
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    File URL: http://www.bris.ac.uk/Depts/CMPO/workingpapers/wp109.pdf
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    References listed on IDEAS

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    Cited by:

    1. Carmine Guerriero, 2006. "Dependent Controllers and Regulation Policies: Theory and Evidence," Working Papers 2006.109, Fondazione Eni Enrico Mattei.
    2. Toke Aidt & Francesco Giovannoni, 2011. "Critical decisions and constitutional rules," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 37(2), pages 219-268, July.

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    More about this item

    Keywords

    constitutions; social contracts; majority rules; bill of rights; vetoes; referenda; amendments; checks and balances;
    All these keywords.

    JEL classification:

    • H10 - Public Economics - - Structure and Scope of Government - - - General
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government

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