Good response, but I have to agree with wedrifid here: you can't compete for "willing taxpayers" at all if you're dealing with hard public goods, and elsewhere competition is dulled by (a) the irrational political loyalties of citizens, (b) the legitimate emotional and economic costs of immigration, (c) the varying ability of different kinds of citizens to move, and (d) protectionist controls on the movement of labor in whatever non-libertopian governments remain, which might provide them with an unfair advantage in real life, the theoretical axioms of competitive advantage theory be damned.

I'd be all for introducing some features of the joint stock corporation into some forms of government, but that doesn't sound very much like what you were proposing would lead to peace and prosperity -- you said the jsc was better than other forms, not a good thing to have a nice dose of.