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Performances et politiques de croissance. Un éclairage empirique à partir d'une étude de l'effet de la taille des pays et nouvelles réflexions théoriques

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  • Mauro Napoletano
  • Jean-Luc Gaffard

Abstract

This paper empirically investigates the interplay between economic performance and policies in OECD countries. Macroeconomic theory focuses on supply policies as a key determinant of country?s economic performance. Aggregate demand can play a role only in the short-run. This view rests on the assumption that the economy is always in equilibrium. However, market distortions may impede the adjustment of the economy to equilibrium and leave room for demand also in the long run. Our analysis reveals the presence of marked cross-country differences in economic performance, according to country size and EMU membership. Furthermore, we show that differences in performance are related to diverging dynamics in domestic vs. external demand components, and to different fiscal, openness and structural policies. Finally, we discuss how these results contribute to revise the standard view about supply and demand policies in the determination of economic performance. JEL Classification codes: E63, E65, C14.

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Bibliographic Info

Article provided by Presses de Sciences-Po in its journal Revue de l'OFCE.

Volume (Year): n° 112 (2010)
Issue (Month): 1 ()
Pages: 213-248

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Handle: RePEc:cai:reofsp:reof_112_0213

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Web page: http://www.cairn.info/revue-de-l-ofce.htm

Related research

Keywords: economic growth; aggregate demand; country size; distribution dynamics; demand and supply policies; euro area;

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