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Boettke, PCandela, R (2020). The Applied Theory of the Bourgeois Era: A Price-Theoretic Perspective. Journal of Contextual Economics – Schmollers Jahrbuch, 140(3-4), 355-366. https://doi.org/10.3790/schm.140.3-4.355
Boettke, Peter J. Candela, Rosolino A.Boettke, Peter J. Candela, Rosolino A. (2020). "The Applied Theory of the Bourgeois Era: A Price-Theoretic Perspective" Journal of Contextual Economics – Schmollers Jahrbuch, vol. 140no. 3-4, 2020 pp. 355-366. https://doi.org/10.3790/schm.140.3-4.355
Boettke, PCandela, R (2020). The Applied Theory of the Bourgeois Era: A Price-Theoretic Perspective. Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 140 (Issue 3-4), pp 355-366. https://doi.org/10.3790/schm.140.3-4.355

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

Boettke, Peter J. | Candela, Rosolino A.

Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 140 (2020), Iss. 3-4 : pp. 355–366

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Peter J. Boettke, University Professor of Economics & Philosophy, Department of Economics, George Mason University, PPE 1 A1, Fairfax, VA 22030, USA.

Rosolino A. Candela, Senior Fellow, F. A. Hayek Program for Advanced Study in Philosophy, Politics, and Economics, Mercatus Center, George Mason University, PPE 1 A1, Fairfax, VA 22030, USA.

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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.

Table of Contents

Section Title Page Action Price
Peter J. Boettke/Rosolino A. Candela: The Applied Theory of the Bourgeois Era: A Price-Theoretic Perspective 355
Abstract 355
Introduction 356
1. Transaction Costs Are Not Constraints, but Objects of Choice 358
2. Property Rights are Not Merely a “Bundle of Sticks” 360
3. Ideas Give Rise to Generalized Increasing Returns 362
4. Conclusion 363
References 355