DEFINITION of 'Constitutional Economics - CE'

A branch of economics which focuses on the conditions that exist in and choices constrained by the legal framework of a political constitution. Constitutional economics principles are used to estimate how a country or political system will grow economically, since a constitution limits what activities individuals and businesses can legally participate in.

BREAKING DOWN 'Constitutional Economics - CE'

Constitutional economics emerged as a field of study in the 1980s. The field is seen as playing a part in developing countries - and countries that are changing political systems - because it involves the study of how legal frameworks influence economic development. One of the focuses of constitutional economics is the interplay between the economic and political rights of citizens compared to the level of state control of resources and institutions.

RELATED TERMS
  1. Political Economy

    Political economy is the study and use of how economic theory ...
  2. Economic Conditions

    Economic conditions are the state of the economy in a country ...
  3. Development Economics

    Development economics is a branch of economic study that focuses ...
  4. Economics

    Economics is a social science concerned with the production, ...
  5. Business Economics

    Business economics applies economic theory and quantitative methods ...
  6. Economic Growth Rate

    An economic growth rate is a measure of economic growth, typically ...
Related Articles
  1. Insights

    Economics Basics

    Learn economics principles such as the relationship of supply and demand, elasticity, utility, and more!
  2. Retirement

    Is my grandchild eligible for Social Security benefits?

    If you’re caring for a family member, they may be entitled to a portion of your Social Security benefits. Rob Kron explains the eligibility requirements
  3. Managing Wealth

    Will My Pension Impact My Social Security Benefits?

    So you're eligible for a pension, and you're eligible for social security. And the question is, will that pension impact your social security benefit?
  4. Investing

    Why Colleges Want Economics to Be a STEM Major

    The answer has less to do with philosophy and more to do with immigration policies.
  5. Insights

    Money And Politics

    Learn about the progression of events and legislation that shaped and influenced today's political environment.
  6. Investing

    Am I Able To Collect Spousal Benefits If I Have Earned A Pension?

    So you're receiving a spousal benefit from your partner, but you're also eligible for a pension. And you want to know, will that pension impact your social security payment?
  7. Investing

    Business Cycle

    The business cycle refers to the fluctuations in economic activity that an economy experiences over a period of time. It consists of expansions, or periods of economic growth, and contractions, ...
  8. Personal Finance

    U.S. Banks Struggle To Reduce Branches (JPM)

    The efforts by U.S. banks to get lean by reduction in branch network are getting challenged by customers who won’t give up regular visits to the branch
  9. Insights

    The 6 Fastest-Growing Economies

    A look at the economic growth in several developing countries.
  10. Investing

    Could 2016 Be the Year the EU Collapses?

    The EU is facing its strongest test since the potential "Grexit." Are pressures now severe enough to break it up?
RELATED FAQS
  1. What impact does economics have on government policy?

    Learn about the impact of economic conditions on government policy and understand how governments engineer economic conditions ... Read Answer >>
  2. Why do some people claim the Federal Reserve is unconstitutional?

    Learn why some people believe it was unconstitutional for the government to establish the Federal Reserve Bank and why they ... Read Answer >>
  3. What are some of the limitations and drawbacks of economics as a field?

    Find out why the field of economics is full of controversy. Policy decisions, political campaigns and personal finances are ... Read Answer >>
  4. Who sets fiscal policy, the president or congress?

    Discover how fiscal policy is set in the United States, including how all three branches of government can affect a given ... Read Answer >>
  5. What is the difference between accounting and economics?

    Discover the difference between accounting and economics by comparing and contrasting the financial discipline of accounting ... Read Answer >>
  6. What Are the Best Measurements of Economic Growth?

    Learn how economists and statisticians track economic growth and why GDP might not be the best measurement of real economic ... Read Answer >>
Hot Definitions
  1. Net Present Value - NPV

    Net Present Value (NPV) is the difference between the present value of cash inflows and the present value of cash outflows ...
  2. Price-Earnings Ratio - P/E Ratio

    The Price-to-Earnings Ratio or P/E ratio is a ratio for valuing a company that measures its current share price relative ...
  3. Internal Rate of Return - IRR

    Internal Rate of Return (IRR) is a metric used in capital budgeting to estimate the profitability of potential investments.
  4. Limit Order

    An order placed with a brokerage to buy or sell a set number of shares at a specified price or better.
  5. Current Ratio

    The current ratio is a liquidity ratio that measures a company's ability to pay short-term and long-term obligations.
  6. Return on Investment (ROI)

    Return on Investment (ROI) is a performance measure used to evaluate the efficiency of an investment or compare the efficiency ...
Trading Center