The quantification of structural reforms: Introducing country-specific policy effects

Balázs Égert and Peter Gal

No 1487, OECD Economics Department Working Papers from OECD Publishing

Abstract: This paper presents country-specific effects of structural reforms. It discusses how sizeable and interesting country-specific effects can be identified in a panel setting by conditioning the impact of individual policies on their own level or on the stance of other policies and institutions. This approach allows for the incorporation of a potentially large set of additional policy areas including institutions and policy areas with limited time-series availability (e.g. sub-components of the Product Market Regulation indicator, housing market regulations and policies, Doing Business indicators and the quality of institutions such as the rule of law indicator or the efficiency of the legal system). Results suggest that for instance, when more stringent product market regulation hurts more in more open economies. Better institutions amplify the positive effect of R&D spending. Tax wedge reduction leads to less employment gains when EPL is not very stringent.

Keywords: employment; institutions; investment; non-linear effects; OECD; policy interactions; product and labour market regulation; productivity; structural reform (search for similar items in EconPapers)
JEL-codes: D24 E17 E22 E24 J08 (search for similar items in EconPapers)
Date: 2018-07-18
New Economics Papers: this item is included in nep-lab and nep-mac
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:oec:ecoaaa:1487-en

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