The Diffusion of Policy Innovations. An Experimental Investigation

University of St. Gallen Department of Economics Discussion Paper No. 2003-14

29 Pages Posted: 5 Aug 2003

See all articles by Jean-Robert Tyran

Jean-Robert Tyran

University of Vienna; University of Copenhagen - Department of Economics; Centre for Economic Policy Research (CEPR)

Rupert Sausgruber

Vienna University of Economics and Business - Department of Economics

Date Written: May 2003

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.

Keywords: Policy emulation, policy experimentation, innovation

JEL Classification: C9, D7, H7

Suggested Citation

Tyran, Jean-Robert and Sausgruber, Rupert, The Diffusion of Policy Innovations. An Experimental Investigation (May 2003). University of St. Gallen Department of Economics Discussion Paper No. 2003-14. Available at SSRN: https://ssrn.com/abstract=422160 or http://dx.doi.org/10.2139/ssrn.422160

Jean-Robert Tyran (Contact Author)

University of Vienna ( email )

Oskar-Morgenstern-Platz 1
Vienna, Vienna 1090
Austria

HOME PAGE: http://homepage.univie.ac.at/jean-robert.tyran/

University of Copenhagen - Department of Economics ( email )

Ă˜ster Farimagsgade 5
Bygning 26
1353 Copenhagen K.
Denmark
+45 353 23 027 (Phone)

HOME PAGE: http://www.econ.ku.dk/tyran/

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Rupert Sausgruber

Vienna University of Economics and Business - Department of Economics ( email )

Welthandelsplatz 1
Vienna, 1020
Austria
+43 1 31336 4572 (Phone)

Register to save articles to
your library

Register

Paper statistics

Downloads
346
Abstract Views
3,093
rank
85,537
PlumX Metrics