TY  - JOUR
AU  - Tornell,Aaron
TI  - Reform from Within
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 6497
PY  - 1998
Y2  - April 1998
UR  - http://www.nber.org/papers/w6497
L1  - http://www.nber.org/papers/w6497.pdf
N1  - Author contact info:
Aaron Tornell
Department of Economics
UCLA
405 Hilgard Ave, Bunche Hall #8283
Los Angeles, CA  90095-1477
Tel: 310/794-1686
Fax: 310/825-9528
E-Mail: tornell@econ.ucla.edu
AB  - We present a model of endogenous institutional change that rationalizes reforms that have taken place in the context of economic crisis and drastic political change.  Most of the reforms have been initiated by powerholders, even though they have ended worse off relative to the status quo.  The first point we make is that reform is the tool used by some powerful groups to limit the power of their political opponents.  The second point is that groups with  common access' to the economy's resources find it individually rational to overappropriate resources.  As a result the economy deteriorates.  When the economy reaches a crisis conflict among groups erupts.  Reform is the result of this conflict.
ER  -