I don't know if Hayek would be on board with it. The main problem is that it introduces a new criterion for arranging production which doesn't emerge from the existing order.
Hayek isn't trying to build the Ideal World. He's taking the world he saw and said "here's how it works", and then, "here's why it wouldn't work if we decided to design a system instead of having it emerge".
So for example, if subsidiarity is imposed, how does that play out? You already create a requirement to deduce what the smallest group capable of producing a thing is. But we already have something like that in the market. It's lumpy and fuzzy, but it does eventually kill off the too large and the too small (modulo endless tinkering by legislators).
Coase explained that firms emerge because of transaction costs. Sometimes it's easier and cheaper to do a thing in existing groups. Sometimes it's not. The tension between these allows firms to emerge from the social order. I'd add that the rise of IT has enabled coordination on a vastly greater scale, which has helped to create the modern corporation.
The point of subsidiarity though is that it puts central authorities in the position of midwifery for having such a world emerge rather than in the position of architecting, designing, and building it.
Hayek isn't trying to build the Ideal World. He's taking the world he saw and said "here's how it works", and then, "here's why it wouldn't work if we decided to design a system instead of having it emerge".
So for example, if subsidiarity is imposed, how does that play out? You already create a requirement to deduce what the smallest group capable of producing a thing is. But we already have something like that in the market. It's lumpy and fuzzy, but it does eventually kill off the too large and the too small (modulo endless tinkering by legislators).
Coase explained that firms emerge because of transaction costs. Sometimes it's easier and cheaper to do a thing in existing groups. Sometimes it's not. The tension between these allows firms to emerge from the social order. I'd add that the rise of IT has enabled coordination on a vastly greater scale, which has helped to create the modern corporation.