Professional Documents
Culture Documents
Peter J. Boettke
2004 Hayek Fellow, LSE
Oxford University
October 12, 2004
v
( £rbitrage
Ñ Discovering the price gaps that exist and acting
on that margin to close the gap
( Buy low ± Sell high
( Innovative
Ñ Discovering new trading opportunities (Smith)
Ñ Discovering lower cost or new technologies
(Schumpeter)
D
GUNS
B C
BUTTER
j
| v
( The quality of institutions in any given society
Ñ Rules of the game
Ñ The Legitimacy of the rules
( Social capital issues
Ñ The enforcement of rules
( Public Policies £dopted in any society
Ñ Security of Private Property Rights
Ñ Freedom of Contract
Ñ Monetary restraint
Ñ Fiscal responsibility
Ñ Free Trade
v
Public
Predation Questions: (1) how do you move
between different enforcement
regimes, and (2) how do you shift
Socialism the entire institutional possibilities
frontier in to get less µbads¶
State
regulation
Common law courts
Self-government
Private
Predation