Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/161859 
Year of Publication: 
2017
Series/Report no.: 
CESifo Working Paper No. 6420
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
This document describes and discusses a new supply side framework that quantifies the impact of structural reforms on per capita income in OECD countries. It presents the overall macroeconomic impacts of reforms by aggregating over the effects on physical capital, employment and productivity through a production function. On the basis of reforms defined as observed changes in policies, the paper finds that product market regulation has the largest overall single policy impact five years after the reforms. But the combined impact of all labour market policies is considerably larger than that of product market regulation. The paper also shows that policy impacts can differ at different horizons. The overall long-term effects on GDP per capita of policies transiting through capital deepening can be considerably larger than the 5- to 10-year impacts. By contrast, the long-term impact of policies coming only via the employment rate channel materialises at shorter horizon.
Subjects: 
structural reforms
product markets
labour markets
regulation
simulation
multi-factor productivity
investment
employment
per capita impact
OECD
JEL: 
D24
E17
E22
E24
J08
Document Type: 
Working Paper
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