Economists often justify government actions by arguing that it deals with externalities, that is, benefits or costs created as a result of economic activity, but not directly related to it. In this book, Gordon Tullock, a classic of public choice theory, argues that government itself can produce externalities. Monarchical governments were the first to engage - for the benefit of the monarch, and not at all to eliminate externalities - in building roads, maintaining troops and ensuring law and order. Governments spend more money on redistribution than on more traditional government activities. This can be considered another attempt to reduce externalities, since an unfavorable situation in society creates externalities for everyone. Rent-seeking behavior, a relatively new area of economic and political research, is closely related to externalities and the structure of government. The book offers a detailed analysis of rent seeking and makes recommendations for improving the structure of government.