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Issue Linkage, Credible Delegation, and Policy Cooperation

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Author Info
Spagnolo, Giancarlo

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Abstract

This Paper, a thorough revision of Spagnolo (1996), addresses the following questions: What is the optimal design for a set of self-enforcing international policy agreements? How many and which issues should each agreement regulate? Are GATT’s constraints on issue linkage (cross-retaliation) welfare-enhancing? To facilitate international cooperation should governments keep policy issues under centralized control, or should they delegate them to independent agencies (e.g. central banks)? In the second case, which issues should be delegated? Finally, institutions allowing governments to credibly delegate policy choices (e.g. to ‘conservative’ central bankers) are good or bad for international policy cooperation?

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 2778.

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Date of creation: May 2001
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Handle: RePEc:cpr:ceprdp:2778

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Related research
Keywords: Cooperation; Cross-Border Spillovers; Delegation; International Agreements; International Institutions; Linkages; Policy Coordination;

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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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  1. Constantinos Syropoulos & Eric Bond, 2003. "Is the Tariff the ‘Mother of Trusts’? Reciprocal Trade Liberalization with Multimarket Collusion," Working Papers 0310, Florida International University, Department of Economics. [Downloadable!]
  2. Hanming Fang & Peter Norman, 2005. "Overcoming Participation Constraints," Cowles Foundation Discussion Papers 1511R, Cowles Foundation, Yale University, revised Apr 2006. [Downloadable!]
    Other versions:
  3. Luis M. B. Cabral, 2003. "An Equilibrium Approach to International Merger Policy," Working Papers 03-25, New York University, Leonard N. Stern School of Business, Department of Economics. [Downloadable!]
    Other versions:
  4. Fritz Breuss, 2004. "WTO Dispute Settlement: An Economic Analysis of four EU-US Mini Trade Wars," WIFO Working Papers 231, WIFO. [Downloadable!]
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This page was last updated on 2009-11-25.

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