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Cross-Country Policy Harmonization with Rent-Seeking

Author

Listed:
  • Hultberg Patrik T

    (Kalamazoo College)

  • Barbier Edward B

    (University of Wyoming)

Abstract

In a reciprocal market model with imperfectly competitive firms, domestic policies will differ across countries that are economically and politically diverse. We explore the implications of this standard result with regard to harmonization of environmental policies between corrupt and non-corrupt countries. Imposing a more stringent policy on a non-corrupt government will be welfare reducing to the receiving' country, but may be welfare enhancing for the imposing' country. However, where environmental standards are under the control of a corrupt government, it is possible that harmonization is welfare enhancing to both countries.

Suggested Citation

  • Hultberg Patrik T & Barbier Edward B, 2003. "Cross-Country Policy Harmonization with Rent-Seeking," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 3(2), pages 1-22, December.
    • Handle: RePEc:bpj:bejeap:v:contributions.3:y:2004:i:2:n:4
    DOI: 10.2202/1538-0645.1293
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    References listed on IDEAS

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    1. Janice Ballou & Matthew Mishkind & Geraldine Mooney & Welmoet van Kammen, "undated". "National Science Foundation Report on Efficiency of Grant Size and Duration: Principal Investigator FY 2001 Grant Award Survey and Institutional Survey," Mathematica Policy Research Reports bdadbcef4daf4bf8b94a0fb7f, Mathematica Policy Research.
    2. Panel on Estimates of Poverty for Small Geographic Areas of which Allen L. Schirm is a member, "undated". "Small-Area Income and Poverty Estimates: Priorities for 2000 and Beyond," Mathematica Policy Research Reports a0588a6815864c46b8974e1d1, Mathematica Policy Research.
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