Constitutional Economics Theories Of Buchanan

James M. Buchanan (Buchanan,1919-2013), a famous American economists in the20th century, is famous for the public choice theory, won the Nobel Prize in economics in1986, is considered the father of the constitutional economics. His main contribution is touse personal choices of the market system decision model to explain how the politicalsystem of various components of the actual works, the "economic man" hypothesis applies tothe non-market or collective choice of the political process, is used to establish a set ofnormative theory to explain how the political system should operate. Public choice theory isconsidered by Buchanan the most prominent contribution by Buchanan in the history ofeconomics. Buchanan used it to solve the problems of （overcoming) government failure inthe process of market failure, through the Constitutional and legislative fundamentalconstraint behavior of the government, the basic content is his Constitutional Economics(Constitutional Economics).Buchanan’s theory of constitutional economics researching field involves witheconomics, political science, law, public finance, public economics, political economics,institutional economics, public management and ethics, and many other disciplines, its theme,content, strong forward-looking, the development of many disciplines has a broad and deepinfluence. Through widely cited numerous disciplines, Buchanan, many of the works hasbeen a classic, even super classic. Though, Buchanan’s works have long become a classic,politics and economics are introducing it, referring to it, of course, also,(of course,)criticizing it, rejecting it. With subject attribute of the traditional dividing line, plusBuchanan’s theory of constitutional economic constitutional choice as the core, theconstitution and democracy, the philosophy of subject/fork, is the tool of classic economics to demonstrate, arcane makes his theory. So, at present the academic circles on most ofBuchanan’s theory research has focused on a particular subject, or from a particularperspective, this article attempts to his constitutional economics theory, from the differentAngle of view for further research.It should be said that the subject character of economics is Buchanan’s constitutionaleconomics theory, the theory of constitutional choice is the core part, but until now, from theperspective of constitutional choice, economic thoughts of Buchanan’s overall in-depthresearch is still relatively lack.To fill this academic blank, in this paper, the constitution ofBuchanan economic thought systematic carding and research, and Buchanan and Hayek,Keynes and Marx, compare the related economic thought of these scholars, for our country’sconstitutional economics academic research to provide the beneficial reference.First of all, about the constitution of Buchanan, the essay discusses the formation anddevelopment process of it. Since Buchanan’s life is introduced, mainly including Buchanan’slife and major works, expounds the constitution of economic thought origin and evolutionprocess of thought. Analysis of Chicago public choice school, Italy’s finance school andteacher, peer of Buchanan’s constitutional economics thoughts and development impact. thewhole theory of constitutional economic is modified in countries around the rational man,the purpose of which is to build a institution that can both prevent the risk of the governmentand enhance the efficiency of the controlling system. It should be said that the public choicetheory is the foundation of the constitutional economics, while constitutional economics isthe core of constitutional economics, the principle of political theory is of great importanceto the supplement of the constitutional choice theory. Public choice theory, the principle ofconstitutional economics and political science, is the main theoretical basis Buchanan’sconstitutional economics theory, representing the Buchanan’s constitutional economicsthoughts for the development of three consecutive stages.Secondly, the core of this paper,is the Buchanan’s constitutional economics study.Analysis of Buchanan’s constitutional economics methodology, which is the name to the economic man supposition and individualism, contract system and freedom and theeconomic interpretation of the constitution. This paper argues that Buchanan’s constitutionaleconomics core theory mainly by constitutional choice theory, the financial constitutionalismtheory and moral reconstruction theory is composed of three parts, has a close logicalrelationship between them. Public choice theory is to analyze the reasons of governmentfailure and performance, in order to effectively solve the problem of government failure,Buchanan stressed with rules to limit the government’s actions. He thinks that a set ofeconomic and political activities of the constitution should be set up to standardize thegovernment behavior, and exert effective constraint on the government behavior. Buchananproposed constitutional choice theory, constitutional choice is actually a limited choice underthe restriction of the constitution. In this paper, from the constituent phases after selectionand constitutional choice two dimensions analysis of Buchanan’s theory of constitutionalchoice. Discusses the rules and their plight, yuan’s theory guarantee: act, the implementationof the rules of uncertainty: theory of the vote. In order to make the rules formulated andimplemented a more fair and effective, he put forward a theory that vote "agreed-most rules-universal principles". At the same time, this article also told Buchanan proposed carried onthe analysis to the plight of the constitution and constitutional constraints. Although fromthat time, is was the earlier stage of Buchanan’s theory of financial constitutionalism, but thispaper argues that, Buchanan’s fiscal constitutional theory is part of the economic theory, thewhole constitution between which and the constitution economic theory is the relationshipbetween part and whole, it is in voting on the basis of the theory and the constitutionalchoice theory that might produce Buchanan expected fiscal constitutional rules, after fullyrealized the voting rules and constitutional choice become possible fiscal constituent ofvarious reform measures. In this paper, the theory of time order according to the logicalorder of theory itself has carried on the reorganization. In Buchanan fiscal constitutionaltheory from this paper, the monetary constitution theory, tax constitutional theory, incomeand distribution were analyzed, and the constitutional theory, respectively discusses the constitution of currency, currency principle, from the perspective of constitutionalconstraints in government taxation, public tax treatment, the principle of distributive justiceand restraint of fiscal income tax tools and so on are discussed. Buchanan argues that rulesand system alone is difficult to resist the moral behavior. So, he thinks the essences of theconstitution economic thought is a combined system reform and the moral reconstruction,recovery of ethics of the effect on the social order.Again, in this paper, the Buchanan’s constitutional economic theory has carried on thecomparison and evaluation. Buchanan for constitutional economics research on theintegration of economics and political science opens up a new field of vision. Buchanan’sconstitutional economic theory revives the tradition of classic and political economics, Smithhas promoted political philosophy, the new institutional economics and the development ofthe new public management, etc. However, Buchanan’s constitutional economics theory andmethodology has many defects, although Buchanan has to modify its theory. His proposedthat constitutional choice theory has experienced from the agreed rules to majority rule anduniversal principles of theology, the research project is also from the principles of publicchoice to constitutional economic and political science. Despite this, there has been noapparent success for his efforts, his theory is still fraught with controversy and shortage. Inthis paper, the Buchanan’s constitutional economics thoughts with Hayek, Keynes, comparewith the constitution of Marx’s economics thought. First, Hayek’s constitutional thought isbased on the evolution of rationality, in common law as the background, knowledge spreadin the society and coordinate as a starting point. And Buchanan’s construction of a certainrational color, as Italy’s inheritance of the early thoughts of public finance, the implement ofthe common law is not complete, to the rules of the public financial activities as a startingpoint, emphasis on rules and rules under the difference between activity and its evolution.Second, in the former period of Keynes, classic financial principles adhere to a balancedbudget, but in the period of Keynes, balanced budget has been gradually no longer important,Keynes trough in the economy, the government should increase public spending, by increasing the total demand to stimulate economic growth and increase employment, and theincrease in public spending would require the government to issue bonds, which creates abudget deficit. Buchanan’s analysis further indicated that even if the Keynes’ theory iscorrect, under the regime of democracy, it will eventually lead to bad consequences.Buchanan’s solution: stick to democracy, abandon the deficit, also is to abandon theKeynesian, suggesting that the return of the fiscal balance principle. Buchanan proposed bytax rates and spending rate as a means of fiscal balance. Third, the government and themarket dual mode to modern mainstream economists from Marx has always been the themeof the debate. It is seeking a flawed and imperfect market of government to some extent thatcan achieve the best balance, which is why people always choose between the two. In fact,the relationship between the government and the market there is no either/or extreme cases.From the perspective of economics, the relationship between government and market shouldbe complement each other, the market failure needs the country’s macroeconomic regulationand control, government failure need market to play a decisive role. Therefore, thegovernment and market should absorb the merits of each other to improve their ownshortcomings. So, how to find the best equilibrium of the combination is the key to theproblem.Finally, this paper aims to find out the practical significance of Buchanan’s constitutionaleconomics theory and theory of enlightenment. Buchanan’s theory of constitutionaleconomics to some extent promoted the western government reform and institutional change,and also received a positive result, Buchanan’s constitutional choice theory, financialconstitutionalism theory of economic thought and moral reconstruction theory can also workfor China’s economic system reform and political system reform has certain enlighteningsignificance, especially those of fairness and justice of constructing socialist country underthe rule of law will play a positive role in promoting. However, we must clearly see thatBuchanan’s constitutional thought is a kind of new liberalism economics,the purpose ofwhich is to find reasonable explanation for the system of capitalism and private ownership.Buchanan proposed within the limits of the laissez-faire market economy, themarket economy in developing countries may bring some misleading, Buchanan’sconstitutional economics theory is a reference at the same time we must be vigilant againstits theoretical limitations, after all, any theory has its own history development, socialenvironment and the present level of economic development, it should not be blindlycopied.