Policies in Hard Times: Assessing the Impact of Financial Crises on Structural Reforms

Gunes Gokmen, Tommaso Nannicini, Massimiliano Onorato and Chris Papageorgiou ()

The Economic Journal, 2021, vol. 131, issue 638, 2529-2552

Abstract: It is argued that crises open up a window of opportunity to implement policies that otherwise would not have the necessary political backing. We show that not only is the crises–reforms nexus unfounded in the data, but rather crises are associated with a reversal of liberalisation interventions depending on the institutional environment. We find that, in democratic countries, crises occurrences have no significant impact on liberalisation measures. On the contrary, after a crisis, autocracies reduce liberalisation in multiple economic sectors, which we interpret as the fear of regime change leading non-democratic rulers to please vested economic interests.

Date: 2021
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Citations: View citations in EconPapers (7)

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Related works:
Working Paper: Policies in Hard Times: Assessing the Impact of Financial Crises on Structural Reforms (2020)
Working Paper: Policies in Hard Times: Assessing the Impact of Financial Crises on Structural Reforms (2017)
Working Paper: Policies in Hard Times: Assessing the Impact of Financial Crises on Structural Reforms (2017)
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