Do Credible Domestic Institutions Promote Credible International Agreements?

Abstract

We examine the relationship between international policy coordination and domestic policy reputation when both are self-sustaining. We show that domestic policy commitment does not necessarily facilitate international cooperation; rather, efficient polices may be most easily sustained when countries are unable to pre-commit to policy domestically. Moreover, lack of domestic commitment is more likely to facilitate international cooperation the larger are the international spillovers of domestic policies.

Keywords: International agreements, domestic policy commitment

JEL Classification: F02, F10