The market system of property rights and prices has been responsible for the generation of wealth in the West since the Industrial Revolution. The pioneering research of Mises, Hayek, Schumpeter, Kirzer, Alchian, Demsetz, among others, has increased our understanding of the spontaneous order of the market. Faculty research in this area explores the role of entrepreneurship, the coordination of market and voluntary activity, and market responses to alleged cases of market failure.
"Hooligans" by Dr. Daniel Smith, Dr. Peter Leeson, and Dr. Nicholas Snow, published in Revue d'Economie Politique"Norms in Sport Contests: The Tour de France" by Dr. Daniel Smith and Dr. Alexander Fink, publsihed in Journal of Sports Management"Been There Done That: The Political Theory of DéJà Vu" by Dr. Daniel Smith, Dr. Peter Boettke, and Dr. Nicholas Snow, published in Stephen Kates's (ed) The Global Financial Crisis: What Have We Learnt?"Does the Lack of a Profit Motive Affect Hiring in Academe? Evidence from the Market for Lawyers" by Dr. Daniel Sutter and Dr. Rex J. Pjesky, published in American Journal of Economics and Sociology"Do Intergovernmental Grants Create Ratchets in State and Local Taxes?" by Dr. George Crowley and Dr. Russell Sobel, published in Public Choice"Technology and the Architecture of Emergent Orders," By Dr. Scott Beaulier, Dr. Daniel Smith and Dr. Sutter, published in Studies in Emergent Order
Public choice economists have pioneered the systematic application of economics’ principles of methodological individualism and rational self-interest to political activity, while constitutional economics has examined the rationale for rules constraining majoritarian democracy to mitigate government failures.
"Measuring the Perception of Cronyism in the United States" by Dr. Daniel J. Smith and Dr. Daniel Sutter, published by the Mercatus Center at George Mason University
Government can supplement the market economy through various productive state activities (the production of public goods) and regulations to address market failures. Economists contribute on these issues through examination of the normative rationales for public policies and the comparative performance of governments and markets on specific policy issues. Faculty research in this area has examined government planning of the recovery from natural disasters and environmental regulation.
Economists from Adam Smith to Milton Friedman have extolled the institutions of the market economy in making nations wealthy. Recent research has produced an index measuring economic freedom across nations and across the U.S. states."Central Economic Planning and India's Economic Performance, 1951-65" by Dr. GP Manish, published in The Independent Review"The Law Merchant and International Trade" by Dr. Daniel Smith and Dr. Peter Leeson, published in The Freeman
The institutions of the market economy depend on support from intellectuals and the public at large. Ideas matter, and research on social change examines why freedom waxes and wanes in societies over time. Center research on this topic has explored bias in the news media and the market for ideas and economic research.