Issue Linkage, Delegation, and International Policy Cooperation
AbstractHow many international agreements should there be, and who should sign them? When policy issues are separable, linking them in a ‘grand international agreement’ facilitates policy cooperation by reallocating slack enforcement power. When policy issues are substitutes, issue linkage further facilitates policy cooperation by increasing the amount of available enforcement power. The contrary happens when issues are complements. Then a better strategy can be to delegate policy issues to diferent independent national agencies. Constitutional rules that permit credible delegation to agents with dfferent objectives from governments facilitate international cooperation by generating stronger credible threats. Implications for multilateral agreements are discussed.
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Bibliographic InfoPaper provided by Faculty of Economics, University of Cambridge in its series Cambridge Working Papers in Economics with number 9913.
Date of creation: Mar 1999
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International agreements; Policy cooperation; Policy coordination; Cross-border spillovers; International institutions;
Find related papers by JEL classification:
- E61 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Policy Objectives; Policy Designs and Consistency; Policy Coordination
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
- F42 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - International Policy Coordination and Transmission
- H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
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- NEP-ALL-2000-01-24 (All new papers)
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