The economic analysis of the competition of states

Abstract

The paper discusses the effects of interaction of states under the conditionwhen property rights of individuals and states a re respected mutually. Inthese situations states compete for better supply of security and justicefor inhabitants on their own territory. These goods are produced by means ofadministrative and repressive apparatus whose activity is financed throughtaxes. This competition leads to supporting of state integrity. The stateinterest is given as a matter-of-fact (already geopolitically). Thisinterest manifests as an egoism of the state itself. Any government of anystate must lay explicit goals to itself and it is usually better informed(with respect to the production of security and justice) than any otherinstitution and individuals because it takes care about immediateacquisition and exploitation of these goods.economic analysis, competition, states, production function, international market, efficiency, government