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Do Structural Policies Affect Macroeconomic Stability?

  • Volker Ziemann
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    Using a panel of OECD countries, this study assesses the linkages between structural policies and macroeconomic stability. Business cycle and time-series characteristics of GDP and its components are employed to define various measures for economic instability and for the persistence of adverse shocks. The results suggest that some growth-enhancing policies such as lowering employment protection also reduce macroeconomic fluctuations, while others may generate trade-offs between growth and stability. A pro-cyclical tax structure seems to help alleviating the persistence of adverse macroeconomic shocks. Les politiques structurelles affectent-elles la stabilité macroéconomique ? À partir d’un panel de pays de l’OCDE, cette étude évalue les liens entre les politiques structurelles et la stabilité macroéconomique. Les caractéristiques du cycle économique et des séries temporelles du PIB et de ses composantes sont utilisées pour définir divers indicateurs de mesure de la stabilité économique et de la persistance de chocs néfastes. Les résultats donnent à penser que certaines mesures en faveur de la croissance, telles que l’allégement des dispositions de protection de l’emploi, peuvent aussi avoir pour effet de réduire les fluctuations macroéconomiques, alors que d’autres obligent à des arbitrages entre croissance et stabilité. Il semble qu’une structure pro-cyclique de la fiscalité aide à atténuer la persistance des chocs macroéconomiques néfastes.

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    File URL: http://dx.doi.org/10.1787/5k43krfllgxt-en
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    Paper provided by OECD Publishing in its series OECD Economics Department Working Papers with number 1075.

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    Date of creation: 03 Jul 2013
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    Handle: RePEc:oec:ecoaaa:1075-en
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