Reform Redux: Measurement, Determinants and Growth Implications

        with Roman Horvath

        Published in European Journal of Political Economy 28 (2012) 227237 (PDF or link)

        Measurement issues are one of the most important reasons for the highly contrasting findings in
        the literature on the effects of structural reforms on growth. This paper puts forward improved measures
        of economic liberalization across countries and over time, focusing on the unique experience of the
        transition economies. The paper shows that structural reforms, according to these new measures, follow
        a much richer dynamics than the one suggested by existing indexes. It also finds that such improved
        measures also generate stronger links with current theoretical work: in standard growth specifications,
        it finds that these new measures of reform have larger and more precisely estimated effects than
        the existing ones.

         Download working paper version:               CEPR DP                 IZA DP

         Data set CH3 reform indexes is available here
 
 
 

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