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Winter 2017
ISSN 0890-913X
Volume 32, Number 4

Comparative Historical Political Economy and the Bourgeois Era

Peter Boettke, George Mason University
Rosolino Candela, George Mason University
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TheJournalofPrivateEnterprise32(4),2017,1329ComparativeHistoricalPoliticalEconomyandtheBourgeoisEraPeterBoettkeGeorgeMasonUniversityRosolinoCandelaGeorgeMasonUniversity______________________________________________________AbstractEconomics,properlyunderstood,isadualexaminationofrulesandthesocialinteractionwithinthoserules,nottheparametrizationofatomisticinteraction.Takentogether,McCloskeystrilogyisawelcomereturntocomparativehistoricalpoliticaleconomy,onethatembracesadiversityofhistorical,political,andculturalcontextsanchoredintheuniversalityofeconomicanalysis.Moreover,itillustratestheimportanceofunpackingtherelationshipbetweenideasandinstitutionstoexplainthenatureandcausesofeconomicgrowth.WeexplorethisrelationshipusingadualanalysisofrulesandofinteractionwithinrulesasdiscussedbyBuchanan,Lachmann,andHayektounderstandhowideasandinstitutionsinteracttogeneratetheethicalunderpinningsfortrade,innovation,andeconomicgrowth.______________________________________________________JELCodes:N20,O43,P16Keywords:DeirdreMcCloskey,BourgeoisEra,institutionsThemethodologicalindividualistmust,itseemstome,acknowledgetherelationshipsbetweenindividualutilityfunctionsandthesocioeconomic-legalpolitical-culturalsettingwithinwhichevaluationsaremade.Butsuchacknowledgementcarrieswithit,almostasamatterofcourse,thepossibleproductivityofinvestmentinthepromulgationofmoralnorms.”JamesBuchanan,TheEconomicsandtheEthicsofConstitutionalOrder,1991,p.186Thepeculiarcharacteristicofsocialchangesisthattheyarebroughtabout(orprevented)bytalkingaboutthem(publicly,excludingtheconspiracyorcoupdetat,wherenottalkingpubliclyisessential);but,thetalk,whichiseffectiveinpromoting,preventing,ordirectingchange,isatotallydifferentkindfromthatusedinanalyzinganddescribingphenomena.”FrankKnight,TheNewerEconomicsandtheControlofEconomicActivity,”1932,p.439,emphasisoriginal
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