The crowding out effect in the constitutional policy

The motivation crowding out effect suggests that external intervention via monetary incentives or punishments may undermine, and under different identifiable conditions strengthen, intrinsic motivation. Over the last few years the motivation crowding out effect has been integrated into economic theory and became the subject of discussion about the possibilities of development of more general human behavior model in the non-market economics. This study demonstrates that the effect is also of relevance in the constitutional policy. The methodological possibilities and limits of constitutional economics in the relationship to the motivation crowding out effect are discussed in this paper.

Keywords: institutions, civic virtue, constitutional economics, extrinsic motivation, homo economicus, intrinsic motivation, motivation crowding out