Research in this area focuses on the analysis of markets and the role of the state. Political processes and political decision-making impose important restrictions on the design and functioning of markets, firms, organizations, and governmental institutions. The area studies the functioning of all these institutions, their interactions with one another, and with political processes and decision-making. Issues concerning the scope of national government policies, its optimal design and the need for international coordination, which is a result of globalization, are also investigated.