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The Diffusion of Policy Innovations. An Experimental Investigation

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Author Info
Jean-Robert Tyran ()
Rupert Sausgruber ()

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Abstract

What causes a government to adopt a new program or policy? Despite a large number of empirical studies available to date, the relative importance of various determinants remains obscure because of difficulties of statistical identification. We present an experimental setting to study the diffusion of policy innovations in the laboratory. Our approach discriminates between experimentation, experience, and emulation as determinants of policy adoption. The policy innovation we study is an internalization tax to mitigate a local market externality. Our results demonstrate the importance of information about innovations in other states in the diffusion of policy innovations.

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Paper provided by Department of Economics, University of St. Gallen in its series University of St. Gallen Department of Economics working paper series 2003 with number 2003-14.

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Length: 26 pages
Date of creation: May 2003
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Handle: RePEc:usg:dp2003:2003-14

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Related research
Keywords: Policy emulation; policy experimentation; innovation;

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Find related papers by JEL classification:
C9 - Mathematical and Quantitative Methods - - Design of Experiments
D7 - Microeconomics - - Analysis of Collective Decision-Making
H7 - Public Economics - - State and Local Government; Intergovernmental Relations

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  2. Christos Kotsogiannis & Robert Schwager, 2006. "Political Uncertainty and Policy Innovation," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 8(5), pages 779-805, December. [Downloadable!] (restricted)
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