Cover Staff Discussion Notes
Buy Book in Print
The Political Costs of Reforms: Fear or Reality?
Author:
Gabriele Ciminelli null

Search for other papers by Gabriele Ciminelli in
Current site
Google Scholar Close
,
Davide Furceri null

Search for other papers by Davide Furceri in
Current site
Google Scholar Close
,
Jun Ge null

Search for other papers by Jun Ge in
Current site
Google Scholar Close
,
Mr. Jonathan David Ostry
Search for other papers by Mr. Jonathan David Ostry in
Current site
Google Scholar Close
, and
Mr. Chris Papageorgiou
Search for other papers by Mr. Chris Papageorgiou in
Current site
Google Scholar Close
Series:
Staff Discussion Notes
Volume/Issue:
Volume 2019: Issue 999
Language:
English
Publication Date:
18 Oct 2019
DOI:
https://doi.org/10.5089/9781513512112.006
ISBN:
9781513512112
ISSN:
2617-6750
Pages:
30
Legal-disclaimer:
Staff Discussion Notes (SDNs) showcase policy-related analysis and research being developed by IMF staff members and are published to elicit comments and to encourage debate.The views expressed in this Policy Discussion Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy.
Download PDF (2 MB) Download Epub
The aim of this SDN is to examine whether fear of a political cost associated with economic reforms is justified by the available evidence, and whether there are lessons from how economic policies might be adjusted to mitigate any political cost. The paper will be based on a new comprehensive database on structural reforms developed by RES, which covers a broad sample of advanced and developing economies over four decades, and incorporates regulations related to the real sector (labor, product markets, trade and the current account), and the financial sector (banking, securities markets and the capital account). The paper will address three questions. First, do reforms reduce the probability of a government getting reelected? Second, for which reforms are political costs particularly high? And third, can fiscal stimulus or other policies “sweeten the pill,” and would favorable economic conditions or greater reform ownership raise the odds for reelection?
  • Collapse
  • Expand
Cover Staff Discussion Notes
Staff Discussion Notes
ISSN:
2617-6750
Publisher:
International Monetary Fund