DP5762 Do Credible Domestic Institutions Promote Credible International Agreements?
|Author(s):||Paola Conconi, Carlo Perroni|
|Publication Date:||July 2006|
|Keyword(s):||domestic policy commitment, international agreements|
|Programme Areas:||International Trade and Regional Economics|
|Link to this Page:||cepr.org/active/publications/discussion_papers/dp.php?dpno=5762|
We examine the relationship between international policy coordination and domestic policy reputation when both are self-sustaining. We show that domestic policy commitment does not necessarily facilitate international cooperation; rather, efficient polices may be most easily sustained when countries are unable to pre-commit to policy domestically. Moreover, lack of domestic commitment is more likely to facilitate international cooperation the larger are the international spillovers of domestic policies.