Using panel data, this paper tries to explain compliance with World Bank conditionality as well as interruptions of IMF programs around election dates in the recipient countries. Compliance with World Bank conditionality is lower in election years and pre-election years. Using a proxy for IMF...

Using panel data for 106 countries in 1971-1997, we estimate generalized least squares regressions to explain IMF lending as well as monetary and fiscal policies in the recipient countries. With respect to moral hazard, we find that a country's rate of monetary expansion and its government...