Policy diffusion and the competition for mobile resources

Andrea Schneider

VfS Annual Conference 2017 (Vienna): Alternative Structures for Money and Banking from Verein für Socialpolitik / German Economic Association

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.

JEL-codes: D78 F23 H77 (search for similar items in EconPapers)
Date: 2017
New Economics Papers: this item is included in nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:vfsc17:168203

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