Systems Competition

In his book The New Systems Competition, based on the Yrjö-Jahnsson Lectures held in Helsinki in 1999, Sinn formulated the Selection Principle, whereby competition between states fundamentally cannot function because states manage the exceptions to the competition process. In one chapter he demonstrates that national systems of banking regulation erode in systems competition and lead banks to take excessive risks when doing business. His arguments triggered a controversy with liberal economists in the journal Finanzarchiv in which Sinn reinforced his calls for an international harmonisation and tightening of banking regulation.

Refereed scientific monographs

The New Systems Competition, Yrjö Jahnsson Lectures, Basil Blackwell: Oxford 2003, 228 pages. One hardback, one paperback edition. To Amazon.




Articles in refereed journals

"The New Systems Competition“, Perspektiven der Wirtschaftspolitik 5, 2004, pp. 23-38; (Download, 129 KB). German version: "Der neue Systemwettbewerb“, Perspektiven der Wirtschaftspolitik 3, 2002, pp. 391- 407; (Download, 148 KB); CESifo Working Paper No. 623, December 2001; NBER Working Paper No. 8747, January 2002.

„The Selection Principle and Market Failure in Systems Competition“Journal of Public Economics 66, 1997, S. 247-274; (Download, 1.28 MB)CESifo Working Paper Nr. 103, 1996; NBER Working Paper Nr. 5411, März 1999.

"How much Europe? Subsidiarity, Centralization and Fiscal Competition"Scottish Journal of Political Economy 41, 1994, pp. 85-107; (Download, 938 KB)CESifo Working Paper No. 39, 1993. German translation: "Wieviel Brüssel braucht Europa?", Staatswissenschaften und Staatspraxis 2, 1994, pp. 155-186.

“Konkurence mezi národními státy: východiska (The Competition between Nation States: Basic Considerations)”, Czech Journal of Economics and Finance (Finance a uver) 42 (8), August 1992, pp. 353-363.


Academic comments

"Asymmetric Information, Bank Failures, and the Rationale for Harmonizing Banking Regulation. A Rejoinder on Comments of Ernst Baltensperger and Peter Spencer“, Finanzarchiv 59, 2003, pp. 340-346 (Download, 1.6 MB).

Policy Contributions in Journals and Academic Volumes

"The New Systems Competition“, in: Österreichische Nationalbank, ed., Competition of Regions and Integration in EMU, Vienna 2002, pp. 77-90 (Download, 77 KB).

"Whither Systems Competition?", CESifo Forum 2, 2001, No. 3, p. 2 (Download, 25 KB).