Constitutional economics
He believed that if people are acting rationally in their own perceived self-interest, and if the decision is voluntary and informed, any such agreement is "efficient" and therefore normatively ought to occur.
For Buchanan, the "good" society is one that furthers the interests of individuals, not some independent moral or teleological end.
This policy is justified by references to strategic tasks formulated on the basis of competing interests regardless of their subsequent impact on political structure.
"[11] Buchanan considered the term "constitutionality" in the broad sense and applied it to families, firms and public institutions, but, first of all, to the state.
Hayek thought it necessary for a return to the traditional views of government, human nature, political philosophy, and economics.
[16] Beard's main thesis was that the U.S. Constitution "was essentially an economic document based upon the concept that the fundamental private rights of property are anterior to government and morally beyond the reach of popular majorities.
[18] As Macey understood Beard a famous and crucial part of the Constitution, separation of powers, was actually a means of allowing hegemony of resources in the hands of the rich few.
Traditionally, the creation of factions has been interpreted as a political move to separate power and prevent hegemony of the state.
He maintains a real economic incentive to factions existed which compelled the Founders to separate government.
He argues that separation of powers shifts the supply curve left, raising the price and decreasing the quantity of legislation.
[citation needed] Judge Richard Posner emphasized the importance of a constitution for economic development.
He emphasizes the importance of constitutional provisions "in setting broader outer bounds to the exercise of judicial discretion".
This also includes the government spending on the judiciary, which in many transitional and developing countries is completely controlled by the executive.
The latter undermines the principle of checks and balances, instrumental in the separation of powers, as this creates a critical financial dependence of the judiciary.
The former makes it almost impossible for any business to facilitate the optimal growth and development of national market economy.
In 2006, the Russian Academy of Sciences officially recognized constitutional economics as a separate academic sub-discipline.
Therefore, they believe that the constitutional economic method only clouds the discussion of public choice and political economy.
William Campbell explains the weakness of constitutional economics in its assumption that the goal of a regime must be efficiency, individual liberty, and libertarian rights, not morality or super-individual good.
