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Political polarization and international cooperation

Author

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  • Hefeker, Carsten
  • Neugart, Michael

Abstract

We analyze the consequences of political polarization between domestic policymakers for international policy coordination or delegation to a common agency. Coordination is preferred under political polarization if it allows to constrain the policy of policymakers with different policy targets, while delegation allows to determine policies in the future by selecting the appropriate agent. Policymakers have different preferences concerning international coordination and which form it should take. These differences are increasing in political polarization. They agree on delegation if election outcomes are close to being random.

Suggested Citation

  • Hefeker, Carsten & Neugart, Michael, 2023. "Political polarization and international cooperation," European Journal of Political Economy, Elsevier, vol. 78(C).
    • Handle: RePEc:eee:poleco:v:78:y:2023:i:c:s0176268023000459
    DOI: 10.1016/j.ejpoleco.2023.102401
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    Cited by:

    1. Gammeltoft, Peter & Panibratov, Andrei, 2024. "Emerging market multinationals and the politics of internationalization," International Business Review, Elsevier, vol. 33(3).

    More about this item

    Keywords

    Political polarization; International cooperation; Delegation; Electoral uncertainty;
    All these keywords.

    JEL classification:

    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation
    • F42 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - International Policy Coordination and Transmission
    • F55 - International Economics - - International Relations, National Security, and International Political Economy - - - International Institutional Arrangements

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