To Shock or Not to Shock? Economics and Political Economy of Large‐Scale Reforms

Peng, Lian; Wei, Shuge

doi:10.1111/1468-0343.00043

Cited by 25 publications

(7 citation statements)

References 8 publications

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“…We call them the step‐by‐step gradualism group. Van Brabant (, , ), Lian and Wei (), and Calcagno et al . () represent this group.…”

Section: Overall Structure Of the Transition Strategy Debatementioning

confidence: 99%

“…We call them the step-by-step gradualism group. Van Brabant (1993, 1994a, 1994b, Lian and Wei (1998), and Calcagno et al (2006) represent this group. In addition to these step-by-step transition strategy advocates, the gradualists also embrace the institutional gradualism group, consisting of Hecht (1994), Liew (1995), Popov (2000aPopov ( , 2000bPopov ( , 2007Popov ( , 2009Popov ( , 2012, and many others, who stress that the establishment of institutions that constitute the foundation of the market economy and democracy, such as property rights and the rule of law, should become the top priority in order to advance the transformation from the planned system to a market economy.…”

Section: Overall Structure Of the Transition Strategy Debatementioning

confidence: 99%

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Radicalism Versus Gradualism: An Analytical Survey of the Transition Strategy Debate

Iwasaki

Suzuki

2015

Journal of Economic Surveys

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Academic debate on a transition strategy for former socialist economies continues even a quarter century after the collapse of the communism in Central and Eastern Europe and the former Soviet Union. In this paper, through an analytical survey of 137 preceding studies, we present an overall picture of the debate and examine the relationship between the debate attitudes and the literature attributes in related studies. We found that the radicalists maintain a consistent debate attitude from the viewpoints of time speed and policy sequence of economic transition, while the debate attitude of the gradualists is more diversified. We also found that there is another group of researchers that stays within the framework of the radicalism-versus-gradualism debate while at the same time keeping at arm's length from both the radicalists and the gradualists. In addition, our cross tabulation analysis and regression estimation of qualitative selection models provide interesting findings on the relationship between the debate attitudes and the literature attributes.JEL classification numbers: O20, O57, P20, P30, P52

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“…We call them the step‐by‐step gradualism group. Van Brabant (, , ), Lian and Wei (), and Calcagno et al . () represent this group.…”

Section: Overall Structure Of the Transition Strategy Debatementioning

confidence: 99%

Section: Overall Structure Of the Transition Strategy Debatementioning

confidence: 99%

Radicalism Versus Gradualism: An Analytical Survey of the Transition Strategy Debate

Iwasaki

Suzuki

2015

Journal of Economic Surveys

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“…In contrast, a gradual approach would produce less severe losses of rent (or gain) by owners of factors of production during a particular phase of reform (Mehlum, 2001). Part of the gains obtained by the initial reforms can be transferred to the losers of subsequent reforms (Lian and Wei, 1998). According to this view, a gradual, multistage reform is superior to a one step removal of all controls.…”

Section: Issues and Guidelines For Policymakersmentioning

confidence: 99%

The speed of adjustment and the sequencing of economic reforms

Nsouli

Rached

Funke

2005

International Journal of Social Economics

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If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information. About Emerald www.emeraldinsight.comEmerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as providing an extensive range of online products and additional customer resources and services.Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation. AbstractPurpose -The purpose of the paper is to review the issues involved in determining the appropriate speed of adjustment and the sequencing of economic reforms, and to develop a checklist of key guidelines for policymakers as a basis for their decision-making process. Design/methodology/approach -The paper develops a conceptual framework based on a survey of the theoretical and empirical literature, and the practical experience of the authors in this area. Findings -The analysis in the paper shows that the optimal speed and sequence of reforms is country-specific. But key policy considerations can help guide policymakers in the design of their reform strategy. Practical implications -The arguments favoring a shock approach or a gradual approach are not absolute. Each country has to choose the proper speed of adjustment and sequencing of reforms by examining country-specific factors. A thorough case-by-case analysis is needed before a decision on the appropriate timing and sequencing of reforms can be made. Originality/value -The analysis in the paper leads to key reform guidelines for policymakerscovering areas such as prerequisites and resource constraints, political economy considerations, credibility and sustainability of reforms -that are instrumental in developing a well-sequenced strategy. IntroductionThe ongoing adjustment and reform efforts of developing countries, the transformation in Central and Eastern Europe and other transition countries of the former Soviet Union, and the recent crisis in East Asia have brought to the fore the importance of the speed and appropriate sequencing of adjustment efforts [1]. For policymakers, these issues are critical to their decision-making. In fact, over the past several decades, observers of internationally supported adjustment programs have tended to disagree more on the pace and sequence, than on the content, of the reform packages (Collier and Gunning, 1999).

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“…Further, the networks of firms and markets necessary for a functioning capitalist economy do not exist in post-Communist countries, and will take time to develop (e.g., Cohen and Schwartz, 1992;Kornai, 1990). When compounded with heterogeneity in agents' discount rates, the politically optimal reform speed can be lower than that in an economy with a benevolent dictator (Lian and Wei, 1998). Alternatively, economic actors respond quickly to new incentives, but negative externalities and imperfect markets increase social adjustment costs (see, e.g., Dewatripont and Roland, 1992;Aghion and Blanchard, 1994).…”

Section: The Debate On the Political Economy Of Economic Reformmentioning

confidence: 99%

A Spoonful of Sugar: Privatization and Popular Support for Reform in the Czech Republic

Earle¹,

Gehlbach²

2003

Economics & Politics

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in ABSTRACTWe analyze the role of privatization in creating a constituency for economic reform, markets, and democratic institutions, focusing on the Czech Republic. Drawing on a 1996 survey, we examine the 1459 respondents' opinions on reforms, economic policies and systems, the legitimacy of transition, and democratic values. Using ordered probit estimation, we find that receiving property through restitution is strongly associated with support for reform and markets.Concerning voucher privatization, we find positive effects for participants retaining shares, but little impact of participation alone. Our simulations suggest that policy designs have substantial consequences for citizens' support of reforms, markets, and democracy.

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To Shock or Not to Shock? Economics and Political Economy of Large‐Scale Reforms

Cited by 25 publications

References 8 publications

Radicalism Versus Gradualism: An Analytical Survey of the Transition Strategy Debate

Radicalism Versus Gradualism: An Analytical Survey of the Transition Strategy Debate

The speed of adjustment and the sequencing of economic reforms

A Spoonful of Sugar: Privatization and Popular Support for Reform in the Czech Republic

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