This paper analyzes the institution of benefit payments from the constitutional economics point of view. Benefit payments cannot be legitimized only by the veil of uncertainty about the personal future income position. From the constitutional economics perspective, they are only justified if externalities of poverty as a genuine public good problem are taken into account. A system of public benefit payments raise up two problems: first it has to overcome the problem of free-riding with regard to transfer payments, and secondly (...) it should not provide incentives for the beneficiary to restrain the own efforts to work. Hence a double commitment is necessary: On the one hand, this commitment must regulate, in which way a citizen is engaged in the financing transfer payments, and on the other hand it has to include obligations for the potential recipients of the transfer payments to immediately return to working life. (shrink)

Thought Experiments of Economic Surplus: Science and Economy in Ernst Mach’s Epistemology. Thought experiments are an important element in Ernst Mach’s epistemology: They facilitate amplifying our knowledge by experimenting with thoughts; they thus exceed the empirical experience and suspend the quest for immediate utility. In an economical perspective, Mach suggested that thought experiments depended on the production of an economic surplus based on the division of labor relieving the struggle for survival of the individual. Thus, as frequently emphasized, in Mach’s (...) epistemology, not only the ‘economy of thought’ is an important feature; instead, also the socioeconomic conditions of science play a decisive role. The paper discusses the mental and social economic aspects of experimental thinking in Mach’s epistemology and examines those within the contemporary evolutionary, physiological, and economic contexts. (shrink)