IDEAS home Printed from https://ideas.repec.org/a/spr/joevec/v15y2005i4p423-442.html
   My bibliography  Save this article

The diffusion of policy innovations -an experimental investigation

Author

Listed:
  • Jean-Robert Tyran
  • Rupert Sausgruber

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. Copyright Springer-Verlag Berlin/Heidelberg 2005

Suggested Citation

  • Jean-Robert Tyran & Rupert Sausgruber, 2005. "The diffusion of policy innovations -an experimental investigation," Journal of Evolutionary Economics, Springer, vol. 15(4), pages 423-442, October.
    • Handle: RePEc:spr:joevec:v:15:y:2005:i:4:p:423-442
    DOI: 10.1007/s00191-005-0261-0
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s00191-005-0261-0
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s00191-005-0261-0?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Walker, Jack L., 1969. "The Diffusion of Innovations among the American States," American Political Science Review, Cambridge University Press, vol. 63(3), pages 880-899, September.
    2. Caldeira, Gregory A., 1985. "The Transmission of Legal Precedent: A Study of State Supreme Courts," American Political Science Review, Cambridge University Press, vol. 79(1), pages 178-194, March.
    3. Heyndels, Bruno & Vuchelen, Jef, 1998. "Tax Mimicking Among Belgian Municipalities," National Tax Journal, National Tax Association;National Tax Journal, vol. 51(1), pages 89-101, March.
    4. 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.
    5. Heyndels, Bruno & Vuchelen, Jef, 1998. "Tax Mimicking Among Belgian Municipalities," National Tax Journal, National Tax Association, vol. 51(n. 1), pages 89-101, March.
    6. Smith, Vernon L, et al, 1982. "Competitive Market Institutions: Double Auctions vs. Sealed Bid-Offer Auctions," American Economic Review, American Economic Association, vol. 72(1), pages 58-77, March.
    7. Lupia,Arthur & McCubbins,Mathew D., 1998. "The Democratic Dilemma," Cambridge Books, Cambridge University Press, number 9780521585934.
    8. Koleman S. Strumpf, 2002. "Does Government Decentralization Increase Policy Innovation?," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 4(2), pages 207-241, April.
    9. Case, Anne C. & Rosen, Harvey S. & Hines, James Jr., 1993. "Budget spillovers and fiscal policy interdependence : Evidence from the states," Journal of Public Economics, Elsevier, vol. 52(3), pages 285-307, October.
    10. Strumpf, Koleman S, 2002. "Does Government Decentralization Increase Policy Innovation?," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 4(2), pages 207-241.
    11. Plott, Charles R, 1983. "Externalities and Corrective Policies in Experimental Markets," Economic Journal, Royal Economic Society, vol. 93(369), pages 106-127, March.
    12. Berry, Frances Stokes & Berry, William D., 1990. "State Lottery Adoptions as Policy Innovations: An Event History Analysis," American Political Science Review, Cambridge University Press, vol. 84(2), pages 395-415, June.
    13. Kollman, Ken & Miller, John H & Page, Scott E, 1997. "Political Institutions and Sorting in a Tiebout Model," American Economic Review, American Economic Association, vol. 87(5), pages 977-992, December.
    14. Besley, Timothy & Case, Anne, 1995. "Incumbent Behavior: Vote-Seeking, Tax-Setting, and Yardstick Competition," American Economic Review, American Economic Association, vol. 85(1), pages 25-45, March.
    15. Helen F. Ladd, 1992. "Mimicking of Local Tax Burdens Among Neighboring Counties," Public Finance Review, , vol. 20(4), pages 450-467, October.
    16. Harrison, Glenn W, et al, 1987. "Coasian Solutions to the Externality Problem in Experimental Marke ts," Economic Journal, Royal Economic Society, vol. 97(386), pages 388-402, June.
    17. Lupia,Arthur & McCubbins,Mathew D., 1998. "The Democratic Dilemma," Cambridge Books, Cambridge University Press, number 9780521584487.
    18. Kollman, Ken & Miller, John H & Page, Scott E, 2000. "Decentralization and the Search for Policy Solutions," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 16(1), pages 102-128, April.
    19. Eyestone, Robert, 1977. "Confusion, Diffusion, and Innovation," American Political Science Review, Cambridge University Press, vol. 71(2), pages 441-447, June.
    20. Walker, Jack L., 1969. "The Diffusion of Innovations among the American States," American Political Science Review, Cambridge University Press, vol. 63(3), pages 880-899, September.
    21. Fernandez, Raquel & Rodrik, Dani, 1991. "Resistance to Reform: Status Quo Bias in the Presence of Individual-Specific Uncertainty," American Economic Review, American Economic Association, vol. 81(5), pages 1146-1155, December.
    22. Feld, Lars P., 1997. "Exit, voice and income taxes: The loyalty of voters," European Journal of Political Economy, Elsevier, vol. 13(3), pages 455-478, September.
    Full references (including those not matched with items on IDEAS)

    Citations

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


    Cited by:

    1. Baskaran, Thushyanthan, 2015. "Tax mimicking in the short- and the long-run: Evidence from German reunification," VfS Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 113088, Verein für Socialpolitik / German Economic Association.
    2. Thiago Fonseca Morello & Luís Fernando Silva e Silva, 2023. "Garnering support for Pigouvian taxation with tax return: a lab experiment," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 25(2), pages 115-142, April.
    3. Tiezzi, Silvia & Xiao, Erte, 2013. "Time Delay and Support for Taxation," MPRA Paper 51233, University Library of Munich, Germany.
    4. Morton, Rebecca B. & Piovesan, Marco & Tyran, Jean-Robert, 2019. "The dark side of the vote: Biased voters, social information, and information aggregation through majority voting," Games and Economic Behavior, Elsevier, vol. 113(C), pages 461-481.
    5. Tiezzi, Silvia & Xiao, Erte, 2016. "Time delay, complexity and support for taxation," Journal of Environmental Economics and Management, Elsevier, vol. 77(C), pages 117-141.
    6. Ashworth, John & Geys, Benny & Heyndels, Bruno, 2006. "Determinants of tax innovation: The case of environmental taxes in Flemish municipalities," European Journal of Political Economy, Elsevier, vol. 22(1), pages 223-247, March.
    7. Huang, Lingbo & Tiezzi, Silvia & Xiao, Erte, 2022. "Tax liability side equivalence and time delayed externalities," European Journal of Political Economy, Elsevier, vol. 72(C).
    8. Song, Qijiao & Qin, Ming & Wang, Ruichen & Qi, Ye, 2020. "How does the nested structure affect policy innovation?: Empirical research on China's low carbon pilot cities," Energy Policy, Elsevier, vol. 144(C).
    9. Lars P. Feld, 2006. "Regulatory Competition and Federalism in Switzerland: Diffusion by Horizontal and Vertical Interaction," CREMA Working Paper Series 2006-22, Center for Research in Economics, Management and the Arts (CREMA).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lars P. Feld, 2006. "Regulatory Competition and Federalism in Switzerland: Diffusion by Horizontal and Vertical Interaction," CREMA Working Paper Series 2006-22, Center for Research in Economics, Management and the Arts (CREMA).
    2. Zhirong Zhao, 2005. "Motivations, Obstacles, and Resources: The Adoption Of The General-Purpose Local Option Sales Tax in Georgia Counties," Public Finance Review, , vol. 33(6), pages 721-746, November.
    3. Ashworth, John & Geys, Benny & Heyndels, Bruno, 2006. "Determinants of tax innovation: The case of environmental taxes in Flemish municipalities," European Journal of Political Economy, Elsevier, vol. 22(1), pages 223-247, March.
    4. Kotsogiannis, Christos & Schwager, Robert, 2006. "On the incentives to experiment in federations," Journal of Urban Economics, Elsevier, vol. 60(3), pages 484-497, November.
    5. Schaltegger, Christoph A & Kuttel, Dominique, 2002. "Exit, Voice, and Mimicking Behavior: Evidence from Swiss Cantons," Public Choice, Springer, vol. 113(1-2), pages 1-23, October.
    6. Matthieu Leprince & Sonia Paty & Emmanuelle Reulier, 2005. "Choix d'imposition et interactions spatiales entre collectivités locales. Un test sur les départements français," Recherches économiques de Louvain, De Boeck Université, vol. 71(1), pages 67-93.
    7. Revelli, Federico & Tovmo, Per, 2007. "Revealed yardstick competition: Local government efficiency patterns in Norway," Journal of Urban Economics, Elsevier, vol. 62(1), pages 121-134, July.
    8. Lars P. Feld & Horst Zimmermann & Thomas Döring, 2003. "Föderalismus, Dezentralität und Wirtschaftswachstum," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 72(3), pages 361-377.
    9. Massimo Bordignon & Floriana Cerniglia & Federico Revelli, 2002. "In Search for Yardstick Competition: Property Tax Rates and Electoral Behavior in Italian Cities," CESifo Working Paper Series 644, CESifo.
    10. Revelli, Federico, 2006. "Performance rating and yardstick competition in social service provision," Journal of Public Economics, Elsevier, vol. 90(3), pages 459-475, February.
    11. Hammadou, Hakim & Paty, Sonia & Savona, Maria, 2014. "Strategic interactions in public R&D across European countries: A spatial econometric analysis," Research Policy, Elsevier, vol. 43(7), pages 1217-1226.
    12. Button, Patrick, 2019. "Do tax incentives affect business location and economic development? Evidence from state film incentives," Regional Science and Urban Economics, Elsevier, vol. 77(C), pages 315-339.
    13. Revelli, Federico, 2003. "Reaction or interaction? Spatial process identification in multi-tiered government structures," Journal of Urban Economics, Elsevier, vol. 53(1), pages 29-53, January.
    14. Christos Kotsogiannis & Robert Schwager, 2005. "Policy Innovation In Federal Systems," Urban/Regional 0504001, University Library of Munich, Germany.
    15. Claudio A. Agostini & Philip Brown & Xiaobo Zhang, 2016. "Special Section: China's Growing Trade and its Role to the World Economy," Pacific Economic Review, Wiley Blackwell, vol. 21(1), pages 13-31, February.
    16. Eric Dubois & Matthieu Leprince & Sonia Paty, 2007. "The Effects of Politics on Local Tax Setting: Evidence from France," Urban Studies, Urban Studies Journal Limited, vol. 44(8), pages 1603-1618, July.
    17. Bernecker, Andreas, 2016. "Divided we reform? Evidence from US welfare policies," Journal of Public Economics, Elsevier, vol. 142(C), pages 24-38.
    18. Laurent Van Malderen & Marcel Gérard, 2012. "Tax Interaction Among Walloon Municipalities: Is There Room For Partisan Monopoly Effect?," ERSA conference papers ersa12p1051, European Regional Science Association.
    19. Redoano, Michela, 2003. "Fiscal Interactions Among European Countries," The Warwick Economics Research Paper Series (TWERPS) 680, University of Warwick, Department of Economics.
    20. Hai (David) Guo & Wen Wang, 2017. "A Spatial Analysis of Florida County Governments' Unreserved General Fund Balances," Public Budgeting & Finance, Wiley Blackwell, vol. 37(3), pages 71-88, September.

    More about this item

    Keywords

    Policy emulation; Policy experimentation; Innovation;
    All these keywords.

    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

    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:spr:joevec:v:15:y:2005:i:4:p:423-442. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.