In the beginning, there were institutions...thoughts on institutions, economics and other random topics.
Tuesday, January 18, 2011
One Need not Move to Somalia...
...to appreciate the economic benefits of an active, competent public sector. According to Eric Crampton, New Zealand is "freer" in the libertarian sense (e.g. by the Heritage Foundation's definition) than the U.S.; yet, it seems they are not better off, economically.
By the general axiom of revealed preference, the increment of liberty isn't worth the loss of income (and inconvenience of moving and living abroad) for the vast majority of libertarians.
At what margin is liberty for liberty's sake worth it?