Competition between companies tends to be beneficial for the general public, but is this also true for competition between States in a world with global financial markets, low transport costs, and increasing migration? In this book, Hans-Werner Sinn provides an insightful comparison of systems competition between private companies and systems competition between States. Unlike the generally beneficial results of competition between companies, systems competition between countries or States within a federation is not always as straightforward. This book analyzes a wide range of state activities, including taxation, public goods provision, income redistribution, environmental policy, safety standards, and competition policy, in order to assess whether systems competition in these areas would be beneficial. Sinn provides a solid economic analysis of the competitive forces at work and addresses how we should organize competition between systems so they will enhance the efficiency of these systems, as opposed to acting destructively on them. Table of Contents Competition among States Taxes and Public Goods The Erosion of the Welfare State Social Dumping in the Transformation Process? Ecological Competition The Competition of Product Standards Limited Liability, Risk Taking and the Competition of Bank Regulators The Competition of Competition Rules