…………………The parallel existence and mutual interaction of "state" and "market" in the modern world create "political economy"; without both state and market there could be no political economy. In the absence of the state, the price mechanism and market forces would determine the outcome of economic activities; this would be the pure world of the economist. In the absence of the market, the state or its equivalent would allocate economic resources; this would be the pure world of the political scientist. Although neither world ever exist in a pure form, the relative influence of the state or the market changes over time and in different circumstances. Therefore, the conceptions of "state" and "market" in the following analysis are what Max Weber has called ideal types.