Competition among governments: The state's two roles in a globalized world
It 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.
|Date of creation:||2010|
|Contact details of provider:|| Postal: Goethestrasse 10, D-79100 Freiburg im Breisgau|
Web page: http://www.walter-eucken-institut.de/
More information through EDIRC
References listed on IDEAS
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.:
- James Buchanan, 1990. "The domain of constitutional economics," Constitutional Political Economy, Springer, vol. 1(1), pages 1-18, December.
- Sinn, Hans-Werner, 1994.
"How much Europe? Subsidiarity, centralization and fiscal competition,"
Munich Reprints in Economics
19838, University of Munich, Department of Economics.
- 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.
- 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, 1997. "The selection principle and market failure in systems competition," Munich Reprints in Economics 19854, University of Munich, Department of Economics.
When requesting a correction, please mention this item's handle: RePEc:zbw:aluord:102. See general information about how to correct material in RePEc.
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 references are entirely missing, you can add them using this form.