The diffusion of policy innovations -an experimental investigation

Jean-Robert Tyran and Rupert Sausgruber

Journal of Evolutionary Economics, 2005, vol. 15, issue 4, 423-442

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

Keywords: Policy emulation; Policy experimentation; Innovation (search for similar items in EconPapers)
Date: 2005
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Citations: View citations in EconPapers (8)

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Working Paper: The Diffusion of Policy Innovations. An Experimental Investigation (2003)
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DOI: 10.1007/s00191-005-0261-0

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