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How Global Rules are established and stabilized

  • Horst Siebert
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    This paper analyzes how international rules are established and stabilized, i.e. how an international institutional order develops. Rules emerge mainly through learning from negative experience and serve to reduce transaction costs. The paper looks at mechanisms that stabilize rule systems, at bargaining procedures for cooperation gains, dispute settlement, sanctions, side payments, self-enforcing contracts, waivers and regional integrations within a multilateral order. In addition it analyzes the prevention of negative spillovers, international courts and global public goods.

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    File URL: https://www.ifw-members.ifw-kiel.de/publications/how-global-rules-are-established-and-stabilized/kap1388.pdf
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    Paper provided by Kiel Institute for the World Economy in its series Kiel Working Papers with number 1388.

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    Length: 36 pages
    Date of creation: Dec 2007
    Date of revision:
    Handle: RePEc:kie:kieliw:1388
    Contact details of provider: Postal: Kiellinie 66, D-24105 Kiel
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    Web page: http://www.ifw-kiel.de
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    1. Drusilla K. Brown & Alan V. Deardorff & Robert M Stern, 2002. "Multilateral, Regional, and Bilateral Trade-Policy Options for the United States and Japan," Working Papers 490, Research Seminar in International Economics, University of Michigan.
    2. Kydland, Finn E & Prescott, Edward C, 1977. "Rules Rather Than Discretion: The Inconsistency of Optimal Plans," Journal of Political Economy, University of Chicago Press, vol. 85(3), pages 473-91, June.
    3. Barro, Robert J, 1986. "Recent Developments in the Theory of Rules versus Discretion," Economic Journal, Royal Economic Society, vol. 96(380a), pages 23-37, Supplemen.
    4. Kemp, Murray C. & Wan, Henry Jr., 1976. "An elementary proposition concerning the formation of customs unions," Journal of International Economics, Elsevier, vol. 6(1), pages 95-97, February.
    5. Gary Clyde Hufbauer & Jeffrey J. Schott & Kimberly Ann Elliott, 1990. "Economic Sanctions Reconsidered: 2nd Edition," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 82, May.
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