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What is the macroeconomic impact of ambitious structural reforms on product and labour markets?

Gilbert Cette (), Jimmy Lopez () and Jacques Mairesse ()

Rue de la Banque, 2016, issue 27

Abstract: What impact would ambitious structural reforms implemented on product and labour markets have on growth? The authors propose an assessment, using a panel of 14 countries, of the consequences of the adoption of “best practices”, defined as the average level of regulations observed in the three economies where they are the least cumbersome. Their simulations show that the implementation of such reforms should lead to a very significant increase in productivity in many countries, in particular in the euro area.

Date: 2016
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