Macroeconomic Effects of Regulation and Deregulation in Goods and Labor Markets

Olivier Blanchard and Francesco Giavazzi ()

The Quarterly Journal of Economics, 2003, vol. 118, issue 3, 879-907

Abstract: Product and labor market deregulation reduce and redistribute rents, leading economic players to adjust to this new distribution. It typically comes with distribution and dynamic effects. To study these effects, we build a macroeconomic model on two central assumptions: monopolistic competition in the goods market, which determines the size of rents; and bargaining in the labor market, which determines the distribution of rents. Product market regulation determines entry costs and the degree of competition. Labor market regulation determines the bargaining power of workers. We show the effects of deregulation. We then use our results to discuss the political economy of deregulation, and recent macroeconomic evolutions in Europe.

Date: 2003
References: Add references at CitEc
Citations: View citations in EconPapers (803)

Downloads: (external link)
http://hdl.handle.net/10.1162/00335530360698450 (application/pdf)
Access to full text is restricted to subscribers.

Related works:
Working Paper: Macroeconomic Effects of Regulation and Deregulation in Goods and Labour Markets (2001)
Working Paper: Macroeconomic Effects of Regulation and Deregulation in Goods and Labor Markets (2001)
Working Paper: Macroeconomic effects of regulation and deregulation in goods and labor markets
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: https://EconPapers.repec.org/RePEc:oup:qjecon:v:118:y:2003:i:3:p:879-907.

Ordering information: This journal article can be ordered from
https://academic.oup.com/journals

Access Statistics for this article

The Quarterly Journal of Economics is currently edited by Robert J. Barro, Lawrence F. Katz, Nathan Nunn, Andrei Shleifer and Stefanie Stantcheva

More articles in The Quarterly Journal of Economics from President and Fellows of Harvard College
Bibliographic data for series maintained by Oxford University Press ().