Existing explanations of domestic structural change focus on the role crise
s play in precipitating radical or episodic change. They largely ignore the
sources and consequences of incremental change, even though this type of c
hange also can have significant effects for policy processes and outcomes.
We outline a framework for studying institutional transformation that accou
nts for both forms of change. The argument is a three part one. First, inte
rnational and domestic events, including both crises and gradual pressures,
open windows of opportunity that provide policy officials with the potenti
al to transform existing institutions. Large-scale, system-wide changes ope
n large windows, which allow radical change, while small-scale, issue-speci
fic problems and changes create more limited opportunities for change. Seco
ndly, whether an institutional change follows a window of opportunity depen
ds on the actions and interests of state officials. Thirdly, state official
s' ability to capitalize on a window of opportunity depends on their instit
utional position or capacity; the prevailing institutional arrangements cre
ate opportunities for, or place limits on, officials' ability to make chang
e. Two case studies illustrate and probe the plausibility of the argument.