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Regulation and Investment

Author

Listed:
  • Alberto Alesina

    (Harvard University)

  • Silvia Ardagna

    (Wellesley College)

  • Giuseppe Nicoletti

    (OECD)

  • Fabio Schiantarelli

    () (Boston College)

Abstract

One commonly held view about the difference between continental European countries and other OECD economies, especially the United States, is that the heavy regulation of the former reduces their growth. Using newly assembled data on regulation in several sectors of many OECD countries, we provide substantial and robust evidence that various measures of regulation in the product markets, concerning in particular entry barriers, are negatively related to investment. The policy implication of our analysis is clear: regulatory reforms that liberalize entry are very likely to spur investment.

Suggested Citation

  • Alberto Alesina & Silvia Ardagna & Giuseppe Nicoletti & Fabio Schiantarelli, 2002. "Regulation and Investment," Boston College Working Papers in Economics 549, Boston College Department of Economics.
  • Handle: RePEc:boc:bocoec:549
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    financial reform; savings; regulation;

    JEL classification:

    • E43 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Interest Rates: Determination, Term Structure, and Effects
    • E1 - Macroeconomics and Monetary Economics - - General Aggregative Models
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development

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