Estimating strategic models of international treaty formation Articles
Overview
published in
- REVIEW OF ECONOMIC STUDIES Journal
publication date
- February 2016
start page
- 1741
end page
- 1778
issue
- 4
volume
- 83
Digital Object Identifier (DOI)
full text
International Standard Serial Number (ISSN)
- 0034-6527
Electronic International Standard Serial Number (EISSN)
- 1467-937X
abstract
- This article develops an empirical framework for analysing the timing of international treaties. Atreaty is modelled as a dynamic game among governments that decide on participation in every period.The net benefit of treaty membership increases over time. Spillovers among members and non-membersaccelerate or delay treaty formation by transforming participation into a strategic complement or substitute,respectively. The predictions of the model inform the estimation of the structural parameters, based on across section of treaty ratification dates.With this approach, I estimate the sign and magnitude of strategicinteraction in the ratification of the Montreal Protocol, in the formation of Europe's preferential tradeagreements, and in the growth of Germany's network of bilateral investment treaties. Through a seriesof counterfactual experiments, I explore different mechanisms that give rise to strategic interaction in theformation of these treaties.
Classification
subjects
- Economics
keywords
- dynamic game; strategic interaction; structural estimation; international environmental agreement; preferential trade agreement; bilateral investment treaty; international relations