The Applied Theory of the Bourgeois Era: A Price-Theoretic Perspective

17 Pages Posted: 22 Jan 2021

See all articles by Peter J. Boettke

Peter J. Boettke

George Mason University - Department of Economics; Mercatus Center at George Mason University

Rosolino Candela

George Mason University - Mercatus Center

Multiple version iconThere are 2 versions of this paper

Date Written: November 12, 2020

Abstract

What can we learn about applied price theory from the Bourgeois Era? In this paper, we contend there are three important lessons that can be extracted from McCloskey’s work on the Great Enrichment. First, transaction costs are not constraints, but objects of choice. Second, property rights are not merely a “bundle of sticks,” in that private property rights make exchange possible, but a culture of liberal ideas makes exchange viable. Third, ideas conducive to liberalism give rise to generalized increasing returns to the scope, rather than scale, of market exchange, which generated the Great Enrichment.

Keywords: Culture; Deirdre McCloskey; Price Theory; Liberalism

JEL Classification: A23; B53; O43; P16

Suggested Citation

Boettke, Peter J. and Boettke, Peter J. and Candela, Rosolino, The Applied Theory of the Bourgeois Era: A Price-Theoretic Perspective (November 12, 2020). Available at SSRN: https://ssrn.com/abstract=3729662 or http://dx.doi.org/10.2139/ssrn.3729662

Peter J. Boettke

George Mason University - Department of Economics ( email )

4400 University Drive
Fairfax, VA 22030
United States
703-993-1149 (Phone)
703-993-1133 (Fax)

Mercatus Center at George Mason University ( email )

3434 Washington Blvd., 4th Floor
Arlington, VA 22201
United States

Rosolino Candela (Contact Author)

George Mason University - Mercatus Center ( email )

3434 Washington Blvd., 4th Floor
Arlington, VA 22201
United States

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
47
Abstract Views
339
PlumX Metrics