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Is there a role for macroeconomic policy in fostering structural reforms? Panel evidence from OECD countries over the past two decades

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Author Info
Duval, Romain

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Abstract

This paper is an empirical attempt to determine whether macroeconomic policies influence reform patterns in labour and product markets. Multivariate probit and linear econometric analyses of the determinants of structural reforms in labour and product markets are carried out for 21 OECD countries over the period 1985-2003. Robust evidence is found that sound public finances and fiscal expansions help foster reforms. The effect of fiscal expansion may also be greater for countries that pursue fixed exchange-rate regimes.

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File URL: http://www.sciencedirect.com/science/article/B6V97-4PV2RMP-1/1/92f3efd0af70b8ad8a77f25ac8964979
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Publisher Info
Article provided by Elsevier in its journal European Journal of Political Economy.

Volume (Year): 24 (2008)
Issue (Month): 2 (June)
Pages: 491-502
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Handle: RePEc:eee:poleco:v:24:y:2008:i:2:p:491-502

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Web page: http://www.elsevier.com/locate/inca/505544

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