IDEAS home Printed from https://ideas.repec.org/a/eee/jpolmo/v47y2025i5p1056-1075.html
   My bibliography  Save this article

Revitalising EU growth: The power of competitive markets

Author

Listed:
  • Camilli, Andrea
  • Catalano, Michele
  • Colacurcio, Claudio
  • Dierx, Adriaan
  • Ilzkovitz, Fabienne

Abstract

The observed decline in competition in the EU has come at a cost. Simulations of the macroeconomic effects of competition using dynamic stochastic general equilibrium models show that the increase in markups observed in the EU since 2000 may have reduced EU GDP by up to 5–7 % compared to the counterfactual. However, without the European Commission’s competition interventions taken over the last ten years, this impact might have been larger by almost one quarter. The paper also suggests that targeted policy measures limiting the market power of high markup companies and tackling the lack of competition in EU lagging countries, each promise to increase GDP by around 4 % after 10 years, counterbalancing the loss due to the increase in EU markups since 2000.

Suggested Citation

  • Camilli, Andrea & Catalano, Michele & Colacurcio, Claudio & Dierx, Adriaan & Ilzkovitz, Fabienne, 2025. "Revitalising EU growth: The power of competitive markets," Journal of Policy Modeling, Elsevier, vol. 47(5), pages 1056-1075.
    • Handle: RePEc:eee:jpolmo:v:47:y:2025:i:5:p:1056-1075
    DOI: 10.1016/j.jpolmod.2025.05.001
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0161893825000468
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jpolmod.2025.05.001?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    More about this item

    Keywords

    ;
    ;
    ;

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • E27 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Forecasting and Simulation: Models and Applications
    • E37 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Forecasting and Simulation: Models and Applications
    • F47 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Forecasting and Simulation: Models and Applications

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jpolmo:v:47:y:2025:i:5:p:1056-1075. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/505735 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.