This paper investigates the relationship between a country's political-economic and institutional environment, and its ability to implement sustainable economic reform programs. The policy issue on which the study focuses is inflation stabilization. It consists principally of econometric...

Policy preference functions (PPFs) explicate trade-offs among various political economic groups concerned with the policy process. Estimation methods for PPFs are detailed. The stochastic nature of PPF parameters is discussed and a method for developing standard errors is introduced. Hypothesis...