Policy Undertakings by the Seven ‘Summit’ Countries: Ascertaining the Degree of Compliance
Format of Original
Journal of Monetary Economics
This paper sifts through the economic-summit declarations, issued annually since 1975, to determine how credible the announced government commitments would have deserved to be, judging by the degree to which they have been fulfilled. Measuring compliance with fuzzy undertakings imposing imprecise obligations was assisted by fitting nonlinear membership functions to allow partial credit. The average scores assigned to the 203 undertakings that could be evaluated through 1989 were so low that the joint null hypothesis of “no summit ambition” and “no summit effect” could barely be rejected. However, there were notable differences by summit, country, and type of issue.