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Dépenses publiques dans une économie à deux pays : Stackelberg versus Nash

Author

Listed:
  • Hubert Kempf

    (EUREQUA - Equipe Universitaire de Recherche en Economie Quantitative - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)

  • Emmanuelle Taugourdeau

    (CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR - Université de Rennes - CNRS - Centre National de la Recherche Scientifique)

Abstract

This paper analyses strategic fiscal policy-making within the context of the standard two-country-two-good real trade model developped by TURNOVSKY (1988). Introducing asymmetry between the two countries and assuming that one country acts as a Stackelberg leader relative to the other one, we compare the welfare issued from the Nash equilibrium and the welfare for each country issued from the Stackelberg equilibrium. It happens that both countries benefi t from Stackelberg equilibrium with respect to the non cooperative equilibrium in the presence of strategic omplementarity, because both governments reduce their public pendings. In this model, strategic interactions depend on the relative value of elasticities of substitution between goods. There may either exist strategic substituability or complementarity.

Suggested Citation

  • Hubert Kempf & Emmanuelle Taugourdeau, 2005. "Dépenses publiques dans une économie à deux pays : Stackelberg versus Nash," Post-Print halshs-00094965, HAL.
    • Handle: RePEc:hal:journl:halshs-00094965
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    Cited by:

    1. Hubert Kempf & Grégoire Rota Graziosi, 2010. "Leadership in Public Good Provision: A Timing Game Perspective," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 12(4), pages 763-787, August.
    2. Grégoire Rota-Graziosi & Hubert Kempf, 2011. "Leadership in Public Good Provision: a Timing Game Perspective," CERDI Working papers halshs-00556944, HAL.

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    Keywords

    Politique budgétaire; Equilibre de Nash;

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