Solomon's Knot : : How Law Can End the Poverty of Nations / / Hans-Bernd Schäfer, Robert D. Cooter.

• Superior document: Title is part of eBook package: De Gruyter Princeton University Press eBook-Package Backlist 2000-2013
• VerfasserIn: Cooter, Robert D.,; Schäfer, Hans-Bernd,
• Place / Publishing House: Princeton, NJ : : Princeton University Press, , [2011]; ©2013
• Year of Publication: 2011
• Edition: Course Book
• Language: English
• Series: The Kauffman Foundation Series on Innovation and Entrepreneurship
• Physical Description: 1 online resource (344 p.) :; 21 line illus. 29 tables.

Sustained growth depends on innovation, whether it's cutting-edge software from Silicon Valley, an improved assembly line in Sichuan, or a new export market for Swaziland's leather. Developing a new idea requires money, which poses a problem of trust. The innovator must trust the investor with his idea and the investor must trust the innovator with her money. Robert Cooter and Hans-Bernd Schäfer call this the "double trust dilemma of development." Nowhere is this problem more acute than in poorer nations, where the failure to solve it results in stagnant economies. In Solomon's Knot, Cooter and Schäfer propose a legal theory of economic growth that details how effective property, contract, and business laws help to unite capital and ideas. They also demonstrate why ineffective private and business laws are the root cause of the poverty of nations in today's world. Without the legal institutions that allow innovation and entrepreneurship to thrive, other attempts to spur economic growth are destined to fail.

Table of Contents

Frontmatter -- Contents -- Preface -- Acknowledgments -- Chapter 1. It's about the Economy -- Chapter 2. The Economic Future of the World -- Chapter 3. The Double Trust Dilemma of Development -- Chapter 4. Make or Take -- Chapter 5. The Property Principle for Innovation -- Chapter 6 Keeping What You Make-Property Law -- Chapter 7 Doing What You Say-Contracts -- Chapter 8. Giving Credit to Credit-Finance and Banking -- Chapter 9. Financing Secrets-Corporations -- Chapter 10. Hold or Fold-Financial Distress -- Chapter 11. Termites in the Foundation-Corruption -- Chapter 12. Poverty Is Dangerous-Accidents and Liability -- Chapter 13. Academic Scribblers and Defunct Economists -- Chapter 14. How the Many Overcome the Few -- Chapter 15. Legalize Freedom-Conclusion -- Notes -- Bibliography -- Index