Learning about reform: Time-varying support for structural adjustment
Political support for structural reforms can vary dramatically over time. Countries that have sustained reforms have seen their popularity grow, while others have witnessed sudden reversals of political support. Opinion can reverse itself, without any apparent provocation, when voters are learning about the effects of reform. In this model, structural adjustment causes a drop in government services and temporary unemployment. The unemployed gradually learn about when they will be re-employed. As labor markets adjust and the cost of reform is revealed, support can gradually rise, it can remain low and suddenly rise, or there can be a quick reversal of support for a previously popular policy. Cross-sectional data, event studies and case study support the explanation. Extensions consider international policies to maintain support for reform.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Burgess, Robin & Stern, Nicholas, 1993. "Taxation and Development," Journal of Economic Literature, American Economic Association, vol. 31(2), pages 762-830, June.
- Sanjay Jain & Sharun W. Mukand, 2004.
"Public Opinion and the Dynamics of Reform,"
Discussion Papers Series, Department of Economics, Tufts University
0408, Department of Economics, Tufts University.
- Fernandez, Raquel & Rodrik, Dani, 1991. "Resistance to Reform: Status Quo Bias in the Presence of Individual-Specific Uncertainty," American Economic Review, American Economic Association, vol. 81(5), pages 1146-55, December.
- John Ferejohn, 1986. "Incumbent performance and electoral control," Public Choice, Springer, vol. 50(1), pages 5-25, January.
- Aaron Tornell, 1998.
"Reform from Within,"
NBER Working Papers
6497, National Bureau of Economic Research, Inc.
- Tornell, A., 1998. "Reform from Within," Papers 650, Harvard - Institute for International Development.
- Aaron Tornell, 1998. "Reform from Within," Harvard Institute of Economic Research Working Papers 1827, Harvard - Institute of Economic Research.
- Sebastian Edwards & Alejandra Cox Edwards, 2000.
"Economic Reforms and Labor Markets: Policy Issues and Lessons from Chile,"
NBER Working Papers
7646, National Bureau of Economic Research, Inc.
- Sebastian Edwards & Alejandra Cox Edwards, 2000. "Economic reforms and labour markets: policy issues and lessons from Chile," Economic Policy, CEPR;CES;MSH, vol. 15(30), pages 181-230, 04.
- repec:cup:cbooks:9780521377003 is not listed on IDEAS
- Sebastian Edwards & Daniel Lederman, 1998. "The Political Economy of Unilateral Trade Liberalization: The Case of Chile," NBER Working Papers 6510, National Bureau of Economic Research, Inc.
- Ronald Findlay & Stanislaw Wellisz, 1982. "Endogenous Tariffs, the Political Economy of Trade Restrictions, and Welfare," NBER Chapters, in: Import Competition and Response, pages 223-244 National Bureau of Economic Research, Inc.
- repec:cup:cbooks:9780521362474 is not listed on IDEAS
- Sanjay Jain & Sharun W. Mukand, 2003. "Redistributive Promises and the Adoption of Economic Reform," American Economic Review, American Economic Association, vol. 93(1), pages 256-264, March.
- Hillman, Arye L, 1982. "Declining Industries and Political-Support Protectionist Motives," American Economic Review, American Economic Association, vol. 72(5), pages 1180-87, December.
When requesting a correction, please mention this item's handle: RePEc:eee:reveco:v:18:y:2009:i:2:p:192-206. See general information about how to correct material in RePEc.
If references are entirely missing, you can add them using this form.