2019
DOI: 10.1007/s11079-019-09529-7
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Policy Coordination Under Model Disagreement and Uncertainty

Abstract: What are the incentives for governments to coordinate their policies internationally when there is model disagreement and uncertainty? We build a model where countries disagree on policy targets and how policies affect the economies, and show that uncertainty not only determines the type of cooperative policy but also whether countries want to cooperate at all. Countries facing larger model disagreement also need to face larger uncertainty with respect to policy spillovers to agree on cooperation. Thus, uncert… Show more

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Cited by 2 publications
(2 citation statements)
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“…Policymakers and government agencies can use the findings to create more effective coordination methods and improve the results of their policy endeavors [18]. Collaborators and cooperators can better grasp the aspects that drive successful collaboration and work together to achieve common goals [31,34]. Furthermore, researchers and academics can build on this work to further investigate the dynamics of collaborative coordination and their applications.…”
Section: Discussionmentioning
confidence: 99%
See 1 more Smart Citation
“…Policymakers and government agencies can use the findings to create more effective coordination methods and improve the results of their policy endeavors [18]. Collaborators and cooperators can better grasp the aspects that drive successful collaboration and work together to achieve common goals [31,34]. Furthermore, researchers and academics can build on this work to further investigate the dynamics of collaborative coordination and their applications.…”
Section: Discussionmentioning
confidence: 99%
“…It offers a unique perspective by recognizing the limitations of human cognitive abilities and behavioral biases in information processing [30]. By incorporating these costs into the model, the paper addresses the need to consider information processing costs in order to improve decision-making processes [31].…”
Section: Literature Review 21 Theoretical Frameworkmentioning
confidence: 99%