A constitution for knaves crowds out civic virtues
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Frey, Bruno
Australian National University. Centre for Tax System Integrity
Australian Taxation Office
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Centre for Tax System Integrity (CTSI), Research School of Social Sciences, The Australian National University
Australian Taxation Office
Australian Taxation Office
Abstract
When discussing constitutional design, economists concentrate on the propensity of
individuals to free ride. Preventing opportunistic behaviour by knaves has costs by crowding
out civic virtue. Another view emphasises active citizen participation in order to bolster civic
virtue. A viable constitution must therefore be strict enough to deter exploitative behaviour. At
the same time, the constitution should fundamentally convey trust towards its citizens and
politicians. Distrusting public laws risk destroying the positive attitude of citizens and
politicians towards the state. Civic virtue can be maintained and fostered by direct citizen
participation via popular referenda and initiatives.
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