International cooperation on financial market regulation

At the latest the global financial crisis has raised the awareness of the need for a globally coordinated financial market regulation. Even though the necessity to cooperate is widely acknowledged, cooperation is often limited in practice. This article characterizes the formation of self-enforcing international financial regulation agreements. Our analysis allows to evaluate the desirability and feasibility of cooperative solutions and explains the challenges associated with the process of cooperation. We model the cooperation of national financial regulators in a game-theoretical framework that considers financial stability to be an impure public good. Joint national supervisory effort is supposed to increase aggregate welfare in terms of a more stable financial system both on a global and on a local level by simultaneously generating incentives to free-ride. Our analysis in general indicates the difficulty of reaching a fully cooperative solution. In our basic version of the model we show that partial cooperation of two or three countries is stable and improves the welfare of all countries relative to the non-cooperative Nash equilibrium. Further analyses highlight the role of additional club benefits. When signatory countries of a coalition gain benefits over and above the joint welfare maximization, stable coalitions of any size become feasible.

La EDUCACIÓN. BIEN PÚBLICO IMPURO QUE PROMUEVE EL CRECIMIENTO ECONÓMICO INCLUSIVO

El trabajo se ubica en el área de la política social, particularmente en el impacto del bien público impuro “Educación” en el crecimiento económico. Su propósito consiste en revelar la importancia de la dotación de los bienes públicos como componente de la política social en el crecimiento económico. Se realizó bajo el enfoque cuantitativo. El principal resultado evidencia que los recursos destinados por los gobiernos al bien público impuro “Educación” generaron una oportunidad en el crecimiento económico inclusivo en la región andina en el periodo 2000-2015.Palabras clave: Crecimiento económico, política social, bienes públicos, modelos econométricos, panel de datos. AbstractThe work is located in the area of ​​social policy, particularly in the impact of the impure public good “Education” on economic growth. Its purpose is to reveal the importance of the endowment of public goods as a component of social policy in economic growth. It was performed under the quantitative approach. The main result shows that the resources allocated by governments to the impure public good “Education” generated an opportunity for inclusive economic growth in the Andean region in the period 2000-2015.Key words: Economic growth, social policy, public goods, econometric models, data panel.