Series: IMF Working Papers
Author(s): S. Erbas
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 01 March 2002
Keywords: reform, sequencing, gradualism, big bang, uncertainty, ambiguity, flexibility, reform outcomes, reform package, expected value
Ambiguity, as opposed to uncertainty, reflects lack of sufficient information about distribution and payoffs of infrequent events. Reforms are infrequent events, undertaken in ambiguous second-best environments whe...