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ECONOMIC ANALYSIS AND INTER‐JURISDICTIONAL COMPETITION
Author(s) -
Ricketts Martin
Publication year - 2004
Publication title -
economic affairs
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.24
H-Index - 18
eISSN - 1468-0270
pISSN - 0265-0665
DOI - 10.1111/j.1468-0270.2004.t01-1-00454.x
Subject(s) - centralisation , public good , competence (human resources) , european union , market failure , economic analysis , competition (biology) , economics , public economics , government failure , government (linguistics) , international trade , market economy , business , economic system , microeconomics , ecology , linguistics , philosophy , management , agricultural economics , biology
The European Union does not set its regulatory principles in line with those that the theory of public goods suggests. The Union does not have full competence in areas such as defence that might involve public goods over a Europe‐wide area. Yet it does have competence over many areas that should be left to member states or local government. However, if competition between jurisdictions is prevented, there will be a drift towards centralisation of economic decision‐making. This paper analyses this trend from the point of view of the theory of clubs and theories of market failure.