--- ENTITY: expense of defence ---

# Expense of Defence

## Definition

The sovereign's financial obligation to maintain military forces capable of protecting society from external violence and invasion, including both the costs of preparing forces in peacetime and employing them during war.

## Source Chapter

Book V, Chapter 1

## Context

The first of the sovereign's three primary duties, forming the foundation for Smith's analysis of how military expenditure varies across different stages of societal development and economic organisation.

## Economic Domain

Regulation

---

--- ENTITY: expense of justice ---

# Expense of Justice

## Definition

The sovereign's financial obligation to establish and maintain an exact administration of justice that protects every member of society from the injustice or oppression of every other member.

## Source Chapter

Book V, Chapter 1

## Context

The second of the sovereign's three primary duties, following the expense of defence and preceding the expense of public works, forming a crucial component of civil government's role in protecting property and maintaining social order.

## Economic Domain

Regulation

---

--- ENTITY: expense of public works and public institutions ---

# Expense of Public Works and Public Institutions

## Definition

The sovereign's financial obligation to erect and maintain public works and institutions that are of high societal benefit but cannot be profitably undertaken by individuals or small groups due to insufficient private return on investment.

## Source Chapter

Book V, Chapter 1

## Context

The third and final of the sovereign's three primary duties, encompassing infrastructure for commerce and institutions for education, representing the most extensive category of public expenditure.

## Economic Domain

Regulation

---

--- ENTITY: militia ---

# Militia

## Definition

A military force composed of ordinary citizens who serve part-time, maintaining their civilian occupations while periodically training for military service, funded primarily through their own subsistence rather than state pay.

## Source Chapter

Book V, Chapter 1

## Context

One of two methods for providing public defence, contrasted with standing armies, representing the traditional form of military organisation in early societies where citizens maintained their own equipment and subsistence.

## Economic Domain

Regulation

---

--- ENTITY: standing army ---

# Standing Army

## Definition

A permanent military force maintained by the state during both peace and war, consisting of professional soldiers who serve as their full-time occupation and receive regular pay and maintenance from public funds.

## Source Chapter

Book V, Chapter 1

## Context

The alternative to militia forces, representing the more advanced and expensive form of military organisation that becomes necessary as societies develop economically and militarily, requiring specialised training and permanent maintenance.

## Economic Domain

Regulation

---

--- ENTITY: corvée ---

# Corvée

## Definition

A system of forced labour imposed on the rural population for public works such as road repair, typically requiring a certain number of days of service per year without monetary compensation.

## Source Chapter

Book V, Chapter 1

## Context

A method of funding public works through direct labour rather than monetary taxation, described as being used in various European countries including France, representing an alternative to toll-based or general revenue funding.

## Economic Domain

Regulation

---

--- ENTITY: regulated company ---

# Regulated Company

## Definition

A trading company that admits members upon payment of fees and adherence to company regulations, but allows each member to trade on their own account rather than pooling capital into a common stock.

## Source Chapter

Book V, Chapter 1

## Context

One of two forms of joint-stock companies, contrasted with joint-stock companies, representing a middle ground between completely free trade and monopolistic trading companies with exclusive privileges.

## Economic Domain

Exchange

---

--- ENTITY: joint-stock company ---

# Joint-Stock Company

## Definition

A trading company formed by pooling capital from multiple investors who share in the profits and losses proportionally to their investment, managed by a court of directors elected by the shareholders.

## Source Chapter

Book V, Chapter 1

## Context

The second form of joint-stock company, contrasted with regulated companies, representing a more capital-intensive form of commercial organisation that can undertake larger ventures but requires careful management to avoid abuse.

## Economic Domain

Exchange

---

--- ENTITY: regulated company versus joint-stock company comparison ---

# Regulated Company versus Joint-Stock Company Comparison

## Definition

The distinction between trading companies where members trade separately on their own capital versus companies where capital is pooled and profits shared, with different implications for management, risk, and effectiveness.

## Source Chapter

Book V, Chapter 1

## Context

A systematic comparison of the two forms of trading companies, examining their relative advantages and disadvantages for different types of commercial ventures and the conditions under which each form is most appropriate.

## Economic Domain

Exchange

---

--- ENTITY: public education institutions ---

# Public Education Institutions

## Definition

Organisations established and maintained by public authorities for the systematic instruction of youth and people of all ages, including schools, universities, and religious institutions.

## Source Chapter

Book V, Chapter 1

## Context

Part of the sovereign's duty to maintain public institutions that benefit society as a whole, examined in terms of their funding mechanisms, effectiveness, and the proper balance between public and private provision of education.

## Economic Domain

General Theory

---

--- ENTITY: public works funding mechanisms ---

# Public Works Funding Mechanisms

## Definition

The various methods by which public infrastructure projects such as roads, bridges, canals, and harbours can be financed, including tolls, local taxes, general revenue, and forced labour.

## Source Chapter

Book V, Chapter 1

## Context

An analysis of how different funding mechanisms affect the efficiency, equity, and appropriateness of public works, considering the benefits to different groups and the administrative requirements of each method.

## Economic Domain

Regulation

---

--- ENTITY: sovereign dignity expenses ---

# Sovereign Dignity Expenses

## Definition

The additional public expenditure required to maintain the elevated status and ceremonial functions of the monarch, which increases with societal wealth and the prevailing standards of luxury and display.

## Source Chapter

Book V, Chapter 1

## Context

The final category of public expense, following defence, justice, and public works, representing the non-functional but socially necessary costs of maintaining the sovereign's position and the dignity of the state.

## Economic Domain

Regulation

---

--- ENTITY: public revenue sources ---

# Public Revenue Sources

## Definition

The various streams of income available to the sovereign for funding public expenses, including taxes, fees, rents, and other charges, distinguished by their economic effects and administrative requirements.

## Source Chapter

Book V, Chapter 1

## Context

The concluding analysis of public finance, examining how different sources of revenue should be allocated to different types of public expenses based on principles of equity, efficiency, and administrative feasibility.

## Economic Domain

Regulation

---

--- ENTITY: three duties of the sovereign ---

# Three Duties of the Sovereign

## Definition

The fundamental obligations of government consisting of protecting society from external violence, protecting individuals from injustice, and establishing public works and institutions that benefit society as a whole.

## Source Chapter

Book V, Chapter 1

## Context

The organising framework for Smith's analysis of public expenditure, establishing the theoretical foundation for understanding the proper scope and limits of government intervention in economic affairs.

## Economic Domain

General Theory

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