Product Market Competition, Investment and Employment-Abundant versus Job-Poor Growth: A Real Options Perspective

Chen, Yu-Fu; Funke, Michael

Product Market Competition, Investment and Employment-Abundant versus Job-Poor Growth: A Real Options Perspective

No 1563, CESifo Working Paper Series from CESifo

Abstract: The role of product market reforms in achieving the objective of higher employment and growth has recently received much attention amongst academics. The aim of this paper is to analyse some of the channels through which cross-market effects come about and to assess their policy relevance. The analytic strategy of this paper relies upon the stochastic real options modelling approach. In a nutshell, our simulations using numerical methods indicate that comprehensive product market reforms would increase factor demand and growth significantly in the medium and long run.

Keywords: product market competition; regulation; real options; investment; employment (search for similar items in EconPapers)
JEL-codes: C61 D81 D92 J23 L51 (search for similar items in EconPapers)
Date: 2005
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_1563

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