AbstractThis Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate. In this paper, we examine how the presence of country insurance schemes affects policymakers’ incentives to undertake reforms. Such schemes (especially when made contingent on negative external shocks) are more likely to foster than to delay reform in crisis-prone volatile economies. The consequences of country insurance, however, hinge on the nature of the reforms being considered: “buffering” reforms, aimed at mitigating the cost of crises, could be partially substituted for, and ultimately discouraged by, insurance. By contrast, “enhancing” reforms that pay off more generously in the absence of a crisis are likely to be promoted.
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Bibliographic InfoPaper provided by Universidad Torcuato Di Tella in its series Business School Working Papers with number countryinsurance.
Length: 27 pages
Date of creation: 2004
Date of revision:
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Web page: http://www.utdt.edu/listado_contenidos.php?id_item_menu=4994
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Other versions of this item:
- Eduardo Levy Yeyati & Tito Cordella, 2004. "Country Insurance," IMF Working Papers 04/148, International Monetary Fund.
- Eduardo Levy Yeyati & Tito Cordella, 2004. "Country Insurance," Econometric Society 2004 Latin American Meetings 136, Econometric Society.
- Tito Cordella & Eduardo Levy Yeyati, 2004. "Country Insurance," Econometric Society 2004 North American Summer Meetings 290, Econometric Society.
- F30 - International Economics - - International Finance - - - General
- G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies
- H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
This paper has been announced in the following NEP Reports:
- NEP-IAS-2004-09-12 (Insurance Economics)
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