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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 countries, especially the United States, is that the heavy regulation of Europe reduces its 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 market, concerning in particular entry barriers, are negatively related to investment. The implications of our analysis are clear: regulatory reforms, especially those that liberalise entry, are very likely to spur investment ... Régulation and investissement Une opinion largement diffuse met en relation le moindre taux de croissance des pays européens vis-à-vis d’autres pays de l’OCDE, et en particulier les États-Unis, avec une plus forte régulation des marchés en Europe. A l’aide d’une nouvelle base de données concernant la régulation sectorielle de plusieurs pays de l’OCDE, nous montrons que certaines mesures de la régulation dans les marchés des biens, surtout celles qui imposent des barrières à l’entrée dans les marchés potentiellement concurrentiels, ont un effet négatif et significatif sur la formation de capital. Les implications de notre analyse sont claires: il est très probable que les réformes de la réglementation, spécialement celles qui tendent à libéraliser l’accès aux marchés, puissent stimuler l’investissement ...

Suggested Citation

  • Alberto Alesina & Silvia Ardagna & Giuseppe Nicoletti & Fabio Schiantarelli, 2003. "Regulation and Investment," OECD Economics Department Working Papers 352, OECD Publishing.
  • Handle: RePEc:oec:ecoaaa:352-en
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    File URL: http://dx.doi.org/10.1787/206618567362
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    References listed on IDEAS

    as
    1. Tito Boeri & Giuseppe Nicoletti & Stefano Scarpetta, "undated". "Regulation and Labour Market Performance," Working Papers 158, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
    2. Simeon Djankov & Rafael La Porta & Florencio Lopez-de-Silanes & Andrei Shleifer, 2002. "The Regulation of Entry," The Quarterly Journal of Economics, Oxford University Press, vol. 117(1), pages 1-37.
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    8. William J. Baumol & Alvin K. Klevorick, 1970. "Input Choices and Rate-of Return Regulation: An Overview of the Discussion," Bell Journal of Economics, The RAND Corporation, vol. 1(2), pages 162-190, Autumn.
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    More about this item

    Keywords

    données de panel; investissement; investment; panel data; regulation; régulation;

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • K23 - Law and Economics - - Regulation and Business Law - - - Regulated Industries and Administrative Law
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • L9 - Industrial Organization - - Industry Studies: Transportation and Utilities

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