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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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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)
Subjects: H Social Sciences > HG Finance
J Political Science > JZ International relations
Divisions: Faculty of Social Sciences > Economics
Faculty of Social Sciences > Centre for the Study of Globalisation and Regionalisation
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:
DateEvent
July 2003Published
Number: No.114
Number of Pages: 33
Status: Not Peer Reviewed
Access rights to Published version: Open Access
Funder: Economic and Social Research Council (Great Britain) (ESRC), University of Warwick

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