"At last, a collection of the best articles on the political economy of reform. It is one that I shall use in my classes and assign to my students."
In this book, Federico Sturzenegger and Mariano Tommasi propose formal models to answer some of the questions raised by the recent reform experience of many Latin American and East European countries. They apply common standards of analytical rigor to the study of economic and political behavior, assuming political agents to be rational and forward-looking, with expectations consistent with the properties of the underlying model. The book is organized around three basic questions: first, why do reforms take place? Second, how are reforms implemented? And third, which candidates are most likely to undertake reform? Although most of the chapters deal with policy issues in developing economies, the findings also apply to areas such as social security and health care reform in industrialized countries.
This book brings together all of the important papers on policy reform that I assign in my political economy course, plus more. The editors' introduction provides a valuable guide to this complex subject. It is especially good at connecting the papers included in the book to the vast related literature in both economics and plitical science.
Herschel I. Grossman, Merton P. Stoltz Professor in the Social Sciences and Professor of Economics, Department of Economics, Brown University
In the last decade, a group of talented young economists has turned its attention to the politics of reform. This collection gathers the classic articles of this new political economy, covering topics ranging from why reforms are delayed to reformers' strategies and tactics. Sturznegger's and Tomassi's book will stand as the definitive introduction to this topic for some time to come.
Stephan Haggard, University of California
The Asian crises have once again highlighted the importance of politics in economic policy formulation. This volume is therefore especially welcome, containing many of the promising models of the political economy of reform (or non-reform).
Anne O. Krueger, Herald L. and Caroline L. Ritch Professor of Humanities and Sciences, Economics Department, Stanford University