Dehejia, Vivek - C.E.P.R. Discussion Papers - 1997
When shock therapy is politically infeasible, will gradualism work? Mussa (1986) conjectured, in the context of a neoclassical model of adjustment, that the answer was ‘yes’. This paper takes up the Mussa conjecture by: (i) building a political-economy model in which it makes sense; (ii)...