Competition among governments: The state's two roles in a globalized world
AbstractIt is common wisdom that the process of globalization has intensified competition among governments. The precise nature of such competition is, however, less well understood. The purpose of this paper is to explore how the competitive pressure that globalization exerts on governments affects the legal-institutional foundations of markets and states. Its main thesis is that globalization demands a stricter distinction between two different functions of the state, functions that have traditionally not been clearly separated. The first is the role of the state as the joint enterprise of its citizens, i.e. as the agency through which citizens provide for themselves the public services they want. The second is its role as a 'territorial enterprise,' i.e. as the agency that defines and enforces the rules of the 'national market,' i.e. the legal-institutional terms under which agents, citizens as well as non-citizens, may do business within its jurisdiction. Making this distinction has important implications for taxation and regulation because individuals' choices concerning their citizenship are determined by other considerations than their choices as 'market-users' or 'jurisdiction-users.' Accordingly, governments face different constraints in defining the terms of citizenship on the one hand and in defining the terms for 'jurisdiction-users' on the other. --
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Walter Eucken Institut e.V. in its series Freiburg Discussion Papers on Constitutional Economics with number 10/2.
Date of creation: 2010
Date of revision:
Contact details of provider:
Postal: Goethestrasse 10, D-79100 Freiburg im Breisgau
Web page: http://www.walter-eucken-institut.de/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Sinn, Hans-Werner, 1997. "The selection principle and market failure in systems competition," Journal of Public Economics, Elsevier, vol. 66(2), pages 247-274, November.
- Sinn, Hans-Werner, 1994.
"How Much Europe? Subsidiarity, Centralization and Fiscal Competition,"
Scottish Journal of Political Economy,
Scottish Economic Society, vol. 41(1), pages 85-107, February.
- Sinn, Hans-Werner, 1993. "How Much Europe? Subsidiarity, Centralization and Fiscal Competition," CEPR Discussion Papers 834, C.E.P.R. Discussion Papers.
- James Buchanan, 1990. "The domain of constitutional economics," Constitutional Political Economy, Springer, vol. 1(1), pages 1-18, December.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (ZBW - German National Library of Economics).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.