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Self-enforcing international agreements and domestic policy credibility
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Conconi, Paola and Perroni, Carlo (2003) Self-enforcing international agreements and domestic policy credibility. Working Paper. Coventry: University of Warwick. Centre for the Study of Globalisation and Regionalisation. Working papers (University of Warwick. Centre for the Study of Globalisation and Regionalisation) (No.114).
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Official URL: http://www2.warwick.ac.uk/fac/soc/csgr/research/wo...
Abstract
We explore the relationship between international policy coordination and domestic policy credibility when both must be self-supporting. Our arguments are presented in the context of a two-country, two-period model of dynamic emission abatement with transboundary pollution, where government policies suffer from a time-consistency problem. In the absence of repeated interaction, any form of coordination – between governments, and between governments and their respective private sectors – improves policy making. Nevertheless, under repeated interaction international policy spillovers can make it possible to overcome the domestic credibility problem; and, conversely, the inability to precommit to policy domestically can help support international policy cooperation.
| Item Type: | Working or Discussion Paper (Working Paper) | ||||
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| Subjects: | H Social Sciences > HG Finance J Political Science > JZ International relations |
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| Divisions: | Faculty of Social Sciences > Economics Faculty of Social Sciences > Centre for the Study of Globalisation and Regionalisation |
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| Library of Congress Subject Headings (LCSH): | International economic relations, International obligations, Game theory, Stochastic analysis, Intergovernmental tax relations | ||||
| Series Name: | Working papers (University of Warwick. Centre for the Study of Globalisation and Regionalisation) | ||||
| Publisher: | University of Warwick. Centre for the Study of Globalisation and Regionalisation | ||||
| Place of Publication: | Coventry | ||||
| Official Date: | July 2003 | ||||
| Dates: |
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| Number: | No.114 | ||||
| Number of Pages: | 33 | ||||
| Status: | Not Peer Reviewed | ||||
| Access rights to Published version: | Open Access (Creative Commons) | ||||
| Funder: | Economic and Social Research Council (Great Britain) (ESRC), University of Warwick |
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