'Big Bang' Versus Gradualism in Economic Reforms: An Intertemporal Analysis with an Application to China

41 Pages Posted: 15 Feb 2006

See all articles by Andrew Feltenstein

Andrew Feltenstein

Georgia State University - Department of Economics

Saleh M. Nsouli

International Monetary Fund (IMF)

Multiple version iconThere are 2 versions of this paper

Date Written: August 2001

Abstract

This paper reviews briefly the controversy in the literature concerning the speed of adjustment and sequencing of reforms, and presents a model parameterized with Chinese data. The model is used to generate different policy simulations to illustrate some of the key issues in the debate on the speed and sequencing of reforms, and not to provide a basis for policy recommendations for China. The simulations highlight the importance of the criteria being used for determining speed and sequencing. The paper also underscores the limitations involved in attempting to derive conclusions from the model, given the complexity of the issues.

Keywords: Transition, sequencing of reforms, speed of adjustment

JEL Classification: D58, P21

Suggested Citation

Feltenstein, Andrew and Nsouli, Saleh M., 'Big Bang' Versus Gradualism in Economic Reforms: An Intertemporal Analysis with an Application to China (August 2001). IMF Working Paper No. 01/98, Available at SSRN: https://ssrn.com/abstract=879656

Andrew Feltenstein (Contact Author)

Georgia State University - Department of Economics ( email )

P.O. Box 3992
Atlanta, GA 30302-3992
United States
404-4130093 (Phone)

Saleh M. Nsouli

International Monetary Fund (IMF) ( email )

700 19th Street NW
Washington, DC 20431
United States

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