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Policy diffusion and the competition for mobile resources

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  • Schneider, Andrea

Abstract

Reforms are often introduced in one region and afterwards adapted by other regions. This paper analyzes a model where policy diffusion can be explained by competition for mobile resources. I provide conditions under which initially symmetric regions realize reforms sequentially and a reform initiated in one region is afterwards adapted by another region. Forward-looking agents anticipate the policy convergence and respond less to the reform than the current difference in policies would imply.

Suggested Citation

  • Schneider, Andrea, 2017. "Policy diffusion and the competition for mobile resources," Annual Conference 2017 (Vienna): Alternative Structures for Money and Banking 168203, Verein für Socialpolitik / German Economic Association.
  • Handle: RePEc:zbw:vfsc17:168203
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    References listed on IDEAS

    as
    1. Langenmayr, Dominika Irma & Martin, Simmler, 2016. "Why the Current Tax Rate Tells You Little: Competing For Mobile and Immobile Firms," Annual Conference 2016 (Augsburg): Demographic Change 145568, Verein für Socialpolitik / German Economic Association.
    2. Kempf, Hubert & Rota-Graziosi, Grégoire, 2010. "Endogenizing leadership in tax competition," Journal of Public Economics, Elsevier, vol. 94(9-10), pages 768-776, October.
    3. Ben Kheder, Sonia & Zugravu, Natalia, 2012. "Environmental regulation and French firms location abroad: An economic geography model in an international comparative study," Ecological Economics, Elsevier, vol. 77(C), pages 48-61.
    4. Hubert Kempf & Grégoire Rota-Graziosi, 2010. "Endogenizing leadership in the tax competition race," Documents de travail du Centre d'Economie de la Sorbonne 10039, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
    5. Rema Hanna, 2010. "US Environmental Regulation and FDI: Evidence from a Panel of US-Based Multinational Firms," American Economic Journal: Applied Economics, American Economic Association, vol. 2(3), pages 158-189, July.
    6. Brülhart, Marius & Parchet, Raphaël, 2014. "Alleged tax competition: The mysterious death of bequest taxes in Switzerland," Journal of Public Economics, Elsevier, vol. 111(C), pages 63-78.
    7. Hikaru Ogawa, 2013. "Further analysis on leadership in tax competition: the role of capital ownership," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 20(3), pages 474-484, June.
    8. Henrik Jacobsen Kleven & Camille Landais & Emmanuel Saez, 2013. "Taxation and International Migration of Superstars: Evidence from the European Football Market," American Economic Review, American Economic Association, vol. 103(5), pages 1892-1924, August.
    9. Zodrow, George R. & Mieszkowski, Peter, 1986. "Pigou, Tiebout, property taxation, and the underprovision of local public goods," Journal of Urban Economics, Elsevier, vol. 19(3), pages 356-370, May.
    10. Wilson, John D., 1986. "A theory of interregional tax competition," Journal of Urban Economics, Elsevier, vol. 19(3), pages 296-315, May.
    11. repec:cup:apsrev:v:84:y:1990:i:02:p:395-415_19 is not listed on IDEAS
    12. Kempf, H. & Rota Graziosi, G., 2010. "Endogenizing leadership in tax competition: a timing game perspective," Working papers 299, Banque de France.
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    More about this item

    JEL classification:

    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism

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