Cross-Border Political Donations and Pareto-Efficient Tariffs

Masahiro Endoh

Working Papers from Economic Growth Center, Yale University

Abstract: This paper examines the effects of lobbying activities across international borders, on determining each country’s import tariff in a multi-principal, multi-agent, menu-auction model. Cross-border political donations could promote international policy cooperation because of two of their distinctive characteristics. First, special interest groups use cross-border donations as tools to wield their influence on ruling parties of other countries directly, which promotes efficiency of policy formation. Second, for ruling parties of countries, cross-border donations make them take into account the impact of their policy on other countries, which makes them more sensitive to other countries’ welfare and, therefore, more cooperative with others. When ruling parties estimate the worth of political contributions from national special interest groups and from foreign lobbying groups with the same weight, Pareto-efficient tariffs are attained at which world welfare is maximized.

Keywords: Cross-border Donations; Truthful Equilibrium; Pareto-Efficient Tariffs (search for similar items in EconPapers)
JEL-codes: D72 F13 H21 P48 (search for similar items in EconPapers)
Pages: 30 pages
Date: 2005-06
New Economics Papers: this item is included in nep-pbe
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

Downloads: (external link)
http://www.econ.yale.edu/growth_pdf/cdp915.pdf (application/pdf)

Related works:
Journal Article: Cross-border political donations and Pareto-efficient tariffs (2012)
Working Paper: Cross-Border Political Donations and Pareto-Efficient Tariffs (2005)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:egc:wpaper:915

Access Statistics for this paper

More papers in Working Papers from Economic Growth Center, Yale University Contact information at EDIRC.
Bibliographic data for series maintained by Benjamin King (benjamin.king@yale.edu this e-mail address is bad, please contact repec@repec.org).