Published in Economic Policy (July 2012) pp. 483–513 (PDF)
What accounts for the dynamics of financial reforms? This paper identifies
political regime as one of the main factors. Focusing on democratization and
financial reform, it puts forward novel evidence for a U-shaped relation, across
countries and over time, for different reform measures and a wide range of estimators.
Partial democracy is a main obstacle to financial reforms and democratization,
when incomplete, may lead to severe financial reform reversals.
Data sets transition countries whole_world
Web appendices theoretical model further econometric results
Working paper version available as IZA DP 4338 CEPR DP 7393
This paper was featured in a VOX
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