Working Paper: CEPR ID: DP5762
Authors: Paola Conconi; Carlo Perroni
Abstract: 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.
Keywords: domestic policy; commitment; international agreements
JEL Codes: F02; F10
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| domestic policy commitment (J18) | international cooperation (F53) |
| lack of domestic commitment (F52) | international cooperation (F53) |
| domestic credibility (F52) | international cooperation (F53) |
| spillover size (R12) | international cooperation (F53) |