Frederico Sturzenegger and Mariano Tommasi propose in this book formal models to answer some of the questions raised by the recent reform experience of many Latin American and East European countries. They apply common standards of analytical rigour to the study of economic and political behaviour, assuming political agents to be rational and forward-looking, with expectations consistent with the properties of the underlying model. The book is organized around three basic questions: why do reforms take place?; how are reforms implemented?; and which candidates are most likely to undertake reform? Although most of the chapters deal with policy issues in developing economies, the findings also apply to areas such as social security and health care reform in industrialized countries.