EconPapers    
Economics at your fingertips  
 

Improving Competition in the Non-Tradable Goods and Labour Markets: The Portuguese Case

Vanda Almeida (), Gabriela Lopes de Castro () and Ricardo Mourinho Félix ()

Working Papers from Banco de Portugal, Economics and Research Department

Abstract: This study assesses the macroeconomic impacts of increasing competition in the non-tradable goods and labour markets in Portugal. We lean on evidence that the maintenance of low competition in these markets may have contributed to the recent poor performance of the Portuguese economy. The analysis is performed using PESSOA, a dynamic general equilibrium model for a small-open economy integrated in a monetary union, featuring Blanchard-Yaari households, a multi-sectoral production structure and a number of nominal and real rigidities. We conclude that measures aimed at increasing competition in the Portuguese non-tradable goods and labour markets could induce important international competitiveness gains and be valuable instruments in promoting necessary adjustments within the monetary union frame-work. However, in the short run, real interest rates are likely to increase temporarily, driving consumption and output temporarily downwards.

JEL-codes: E2 E60 F16 F41 (search for similar items in EconPapers)
Date: 2008
References: View complete reference list from CitEc
Citations View citations in EconPapers (4) Track citations by RSS feed

Downloads: (external link)
http://www.bportugal.pt/en-US/BdP%20Publications%20Research/WP200816.pdf

Related works:
Journal Article: Improving competition in the non-tradable goods and labour markets: the Portuguese case (2010) Downloads
Working Paper: Improving competition in the non-tradable goods and labour markets: the Portuguese case (2008) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:ptu:wpaper:w200816

Access Statistics for this paper

More papers in Working Papers from Banco de Portugal, Economics and Research Department
Contact information at EDIRC.
Series data maintained by DEE-NTDD ().

 
Page updated 2014-10-19
Handle: RePEc:ptu:wpaper:w200816