2007
DOI: 10.1080/00036840600690231
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Towards an equilibrium level of market reform: how politics affects the dynamics of policy change

Abstract: In this article we examine the dynamics of economic reforms that are implemented by incumbent policy-makers interested in maintaining their political power. We use a sample of 86 countries over a time period going from 1980 to 2001 and find that the achievement of an equilibrium level of market liberalization is highly costly. Our results are robust to endogenity and model specification.

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Cited by 8 publications
(3 citation statements)
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“…Leonida et al (, 1633) ran a quadratic functional form on their measure of political competition finding a U‐shaped relationship, such that “governments decide to liberalize their economy only when the degree of political competition is either very high or very low.”…”
Section: The Determinants Of Economic Freedommentioning
confidence: 99%
“…Leonida et al (, 1633) ran a quadratic functional form on their measure of political competition finding a U‐shaped relationship, such that “governments decide to liberalize their economy only when the degree of political competition is either very high or very low.”…”
Section: The Determinants Of Economic Freedommentioning
confidence: 99%
“…1 Comparatively little work has been done on the causes of economic freedom. There is some evidence that economic freedom is enhanced by fiscal decentralization (Cassette and Paty 2010), more educated politicians (Dreher et al 2009), and by the competitiveness of the political environment (Leonida, Patti and Navarra 2007). Djankov et al (2003a, b), and Bjornskov (2010) examined the determinants of legal institutions consistent with economic freedom.…”
Section: Notesmentioning
confidence: 99%
“…We also add to the literature that examines the causes of economic freedom. There is evidence that economic freedom is enhanced by fiscal decentralization (Cassette & Paty, 2010), more educated politicians (Dreher, Lamla, Lein, & Somogyi, 2009), and by the competitiveness of the political environment (Leonida, Maimone Ansaldo Patti, & Navarra, 2007). Djankov, McLiesh, Nenova, and Shleifer (2003), and Bjørnskov 2010…”
Section: Introductionmentioning
confidence: 99%