Strategic Interactions on Structural Reforms Between Integrated Economies: What Lessons for the EU?

Etienne Lehmann () and Emmanuelle Taugourdeau

Journal of Economic Integration, 2004, vol. 19, 46-52

Abstract:

We show that the domestic output increases with a foreign country's structural reform and decreases with foreign country’s fiscal policy. Hence, when governments act non-cooperatively, they implement too low structural reforms and too much fiscal policies.

Keywords: Coordination failures; Aggregate supply; Aggregate demand; Structural reforms (search for similar items in EconPapers)
JEL-codes: E61 F42 H87 (search for similar items in EconPapers)
Date: 2004
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Persistent link: https://EconPapers.repec.org/RePEc:ris:integr:0265

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