Constitutions and crisis

A crisis is an unexpected event that creates uncertainty and poses a direct or perceived threat to the goals and norms of an organization or society. While crises are ubiquitous, how societies respond to crises, and the way crises affect societies, is largely a matter of constitutional political economy. Drawing on a variety of insights from James Buchanan's research, this paper develops the political economy of crisis. Focus is placed on understanding: (1) how existing rules influence how societies cope with crises, (2) how crises can affect rules, and (3) the potential for the reform of rules in the wake of crises.

► The onset of a crisis typically requires an urgent response to minimize the associated damage. ► How societies respond to crises, and the way crises affect societies, is largely a matter of the rules governing social and political interactions. ► James Buchanan's body of research is central to understanding the political economy of crisis.