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Will Gradualism Work When Shock Therapy Doesn’t?
Author(s) -
Dehejia Vivek H.
Publication year - 2003
Publication title -
economics and politics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.822
H-Index - 45
eISSN - 1468-0343
pISSN - 0954-1985
DOI - 10.1111/1468-0343.00114
Subject(s) - gradualism , shock (circulatory) , shock therapy , context (archaeology) , work (physics) , economics , constraint (computer aided design) , politics , keynesian economics , positive economics , political science , law , engineering , history , medicine , paleontology , mechanical engineering , archaeology , biology
When shock therapy is politically infeasible, will gradualism work? This paper takes up this question by: (i) building a political economy model in which it makes sense; (ii) stating the relevant political economy constraint rigorously; and (iii) analyzing the question in the context of a neoclassical model of adjustment, based on Mussa (1978). The paper answers the question in the affirmative, thus contributing to the scientific and policy literature on the economic analysis of policy reform.