Working Paper

The Concept of a World Economic Order

Author

  • Horst Siebert
Publication Date

This paper studies the concept of an international economic order, i.e. an institutional arrangement of international rules. Such rules emerge from negative experiences – historical disasters – that inflict severe hardship on people. A taxonomy for rules reducing transaction costs is developed, for instance through decentralization of decisions, property rights, territoriality and the internalization of border-crossing negative externalities and mechanisms for global public goods. Some aspects of the rule system are studied including the process of ceding sovereignty and philosophical thoughts on international rules.

Info

JEL Classification
A12, F15, F02, K00, N00, P00

Key Words

  • Besitzrechte
  • concept of order
  • Freiburg school
  • hierarchy of rules
  • International relations
  • philosophical ideas
  • property rights
  • transaction costs
  • welfare gains of rules