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Strategic Interactions on Structural Reforms Between Integrated Economies: What Lessons for the EU?

Author

Listed:
  • Lehmann, Etienne

    () (University of Paris 2 - Panthéon-Assas)

  • Taugourdeau, Emmanuelle

    () (University of Paris 1 - Panthéon-Sorbonne)

Abstract

We show that the domestic output increases with a foreign country's structural reform and decreases with foreign country’s fiscal policy. Hence, when governments act non-cooperatively, they implement too low structural reforms and too much fiscal policies.

Suggested Citation

  • Lehmann, Etienne & Taugourdeau, Emmanuelle, 2004. "Strategic Interactions on Structural Reforms Between Integrated Economies: What Lessons for the EU?," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 19, pages 46-52.
  • Handle: RePEc:ris:integr:0265
    as

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    More about this item

    Keywords

    Coordination failures; Aggregate supply; Aggregate demand; Structural reforms;

    JEL classification:

    • E61 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Policy Objectives; Policy Designs and Consistency; Policy Coordination
    • F42 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - International Policy Coordination and Transmission
    • H87 - Public Economics - - Miscellaneous Issues - - - International Fiscal Issues; International Public Goods

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