IDEAS home Printed from https://ideas.repec.org/a/adr/anecst/y2005i77p173-185.html
   My bibliography  Save this article

Dépenses publiques dans une économie à deux pays : Stackelberg versus Nash

Author

Listed:
  • Hubert Kempf
  • Emmanuelle Taugourdeau

Abstract

This paper analyses strategic fiscal policy-making within the context of the standard two-country-two-good real trade model developped by Turnovsky (1988). Introducing asymmetry between the two countries and assuming that one country acts as a Stackelberg leader relative to the other one, we compare the welfare issued from the Nash equilibrium and the welfare for each country issued from the Stackelberg equilibrium. It happens that both countries benefit from Stackelberg equilibrium with respect to the non cooperative equilibrium in the presence of strategic complementarity, because both governments reduce their public spendings. In this model, strategic interactions depend on the relative value of elasticities of substitution between goods. There may either exist strategic substituability or complementarity.

Suggested Citation

  • Hubert Kempf & Emmanuelle Taugourdeau, 2005. "Dépenses publiques dans une économie à deux pays : Stackelberg versus Nash," Annals of Economics and Statistics, GENES, issue 77, pages 173-185.
  • Handle: RePEc:adr:anecst:y:2005:i:77:p:173-185
    as

    Download full text from publisher

    File URL: http://www.jstor.org/stable/20079121
    Download Restriction: no
    ---><---

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Hubert Kempf & Grégoire Rota Graziosi, 2010. "Leadership in Public Good Provision: A Timing Game Perspective," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 12(4), pages 763-787, August.
    2. Grégoire Rota-Graziosi & Hubert Kempf, 2011. "Leadership in Public Good Provision: a Timing Game Perspective," CERDI Working papers halshs-00556944, HAL.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:adr:anecst:y:2005:i:77:p:173-185. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Secretariat General or Laurent Linnemer (email available below). General contact details of provider: https://edirc.repec.org/data/ensaefr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.