The purpose of economic reform is to reduce distortions and enhance efficiency. However, when reforms are partial and incremental, individuals and local governments are often able to capture the rent inherent in the gradual transition process. Warned that such rent-seeking behavior might lead to...

Incremental Reform and Distortions in China's Product and Factor Markets Xiaobo Zhang and Kong-Yam Tan The purpose of economic reform is to reduce distortions and enhance efficiency. This could happen, for example, if increased interregional competition as a result of fiscal decentralization led...

Opposing recommendations with respect to key sequencing issues characterize the controversy between the advocates of the orthodox (technocratic) approach and the recently popularized political economy approach. It is suggested that the concept of credibility provides in many cases a fruitful...