Abstract

Quarterly evidence on participation in IMF programs for the period 1974–2003 is examined using the techniques of hazard analysis and error-correction estimation. Three hypotheses are proposed and tested. An increase in cumulative prior participation in IMF programs is found to cause a reduction on average in the length of a new spell of participation. The length of time between participation spells is reduced significantly with an increase in prior participation in IMF programs. Reserve adequacy is shown to be significantly and positively affected by participation in IMF programs. The results support a “revolving door” explanation of participation in IMF programs.

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