>Tracy, you're right: the AEA Review is peer-reviewed and the AEA itself is highly reputable. Do you know whether that sentence was changed from the draft? Or am I being too harsh about a suggestion about "de facto" liberalization to describe different and new behavior by banking entities? ;-)

I've been searching for a freebee final version with no luck so far. However, I think the rutgers version may be a copy of it. Still, it is de facto financial liberalization they are referring to which is a phrase pretty common. See here:

http://ideas.repec.org/a/ebl/ecbull/v6y2008i3p1-10.html

http://www.sciencedirect.com/science?_ob=ArticleURL&_udi=B6VCY-4KNMB33-1&_user=10&_rdoc=1&_fmt=&_orig=search&_sort=d&view=c&_acct=C000050221&_version=1&_urlVersion=0&_userid=10&md5=96e5ffcc029f0abbae1043e7009bb222

http://books.google.com/books?id=9TPDGJ3yiE8C&pg=PA63&lpg=PA63&dq=de+facto+liberalization&source=bl&ots=r8MKXm_Klk&sig=CMIGstgm-Li5a3xpPJVN5tBhSyo&hl=en&ei=Fa82SsraEsuMtgfPhNi2CQ&sa=X&oi=book_result&ct=result&resnum=7#PPR7,M1

Sorry my words got typed backwards. :o) financial "de facto" liberalization

Used in most as: de jure financial liberalization (an index of liberalization) and de facto liberalization (the volume of capital flows).

In this article they used it as two indicators for the process and timing of financial liberalization:

a de jure binary indicator is constructed using the official dates of equity market liberalization described in Beckaert and Harvey
(2005), and a de facto binary indicator is based on the identification of country-specific trend
breaks in private capital flows.7 We view these two indicators as providing complementary information
on the process of financial liberalization. The de jure indicator identifies the timing of a
formal regulatory change that allows foreign investors to invest in domestic equity securities. The
de facto indicator detects the timing of an actual change in the pattern of foreign inflows and it
covers portfolio flows, bank flows and foreign direct investments.

http://www.econ.ucla.edu/people/papers/Tornell/Tornell408.pdf