On building a sovereign state from scratch: The law and economics of Theodor Herzl's programmatic work

Rarely has one book had the impact of Herzl's Der Judenstaat. To which other book can we points as having led to the creation of an entire state? In looking at the slim volume today, we are struck by its freshness of insight and its strict adherence to trying to find institutional solutions that would allow people to establish the new state and then conduct their lives according to what Herzl conceived as modern Jewish principles. This study is exemplary not only for its success. In a time of great economic and legal change, scholars particularly in the transitional economies are looking for analyses that help them create the functioning institutions that need to be built, often quite literally, from scratch. Herzl, who wrote his book not as a contribution to law and economics but as a contribution to furthering his cause, nevertheless left a remarkable exercise in applied law and economics.     

Codetermination in Germany, 1949–1956

Franz Böhm's criticisms of codetermination (1951) are placed in their historical context. The article seeks to explain why Böhm's arguments ultimately proved not to be correct under the specific German historical circumstances.     

Richard Musgrave,public finance,and public choice

Review Article

Richard Musgrave, public finance, and public choice     

Assessing the performance of public enterprises: A public-choice approach

Recent advances in the theory of public enterprises have led to the development of criteria for assessing their performance. The underlying idea is to determine the best practice of a particular enterprise and assess other public enterprises in the same industry against that best practice. This article is critical of the best-practice-approach and offers an alternative public-choice-based procedure.The objectives assigned to the operation of public enterprises in the best-practice approach do not reflect the specific functions of public enterprises. On the contrary, they are general economic policy objectives derived from a general theory of economic policy based on normative welfare economics. The efficiency of public enterprises is then considered a policy objective. In terms of a public-choice perspective, however, efficiency is almost never in itself a policy objective of a public enterprise. It is unlikely (but not impossible) that we may find a public enterprise with essentially the same production function as an efficiently operated private enterprise. By their very nature, public enterprises are diverse and suited for the most diverse policy objectives. Therefore, performance indicators of a general kind (based on welfare economics) do not reflect the purpose of running a particular public enterprise. The best-practice approach is based on the attribution of policy objectives. A more satisfying analytical approach derives the policy objectives of a particular enterpise by means of a public-choice analysis of its observable behavior. This positive and empirical analysis can then yield those policy objectives against which the performance of the public institution can be assessed.The article has three main sections. The first offers a critical discussion of the existing literature on performance measurements, in particular the best-practice approach. The second suggests an alternative public choice theory of public enterprise behavior, and the third develops a stepwise procedure for assessing the performance of public enterprises in a public-choice analytical framework.     

The law firm as an investment bank in class actions

Class action finance raises substantial principal agency problems between plaintiffs and lawyers, which limit the extent to which the class action can be used as an instrument to overcome market failure.     

Consolidation of the Field: a Review Article

When a particular research field experiences the sudden and simultaneous appearance of several encyclopaedic and anthological works, this might be taken as a sign of consolidation. This article tests the hypothesis of consolidation on occasion of the appearance of several new anthologies and an encyclopaedia.