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When discussing constitutional design, economists concentrate on the propensity of to free ride. Preventing opportunistic behaviour by knaves has costs by crowding civic virtue. Another view emphasises active citizen participation in order to bolster civic. A viable constitution must therefore be strict enough to deter exploitative behaviour. At same time, the constitution should fundamentally convey trust towards its citizens and. Distrusting public laws risk destroying the positive attitude of citizens and towards the state. Civic virtue can be maintained and fostered by direct citizen via popular referenda and initiatives.
Bruno S. Frey (Tue,) studied this question.