Arbeitspapier

The Quantification of Structural Reforms in OECD Countries: A New Framework

This document describes and discusses a new supply side framework that quantifies the impact of structural reforms on per capita income in OECD countries. It presents the overall macroeconomic impacts of reforms by aggregating over the effects on physical capital, employment and productivity through a production function. On the basis of reforms defined as observed changes in policies, the paper finds that product market regulation has the largest overall single policy impact five years after the reforms. But the combined impact of all labour market policies is considerably larger than that of product market regulation. The paper also shows that policy impacts can differ at different horizons. The overall long-term effects on GDP per capita of policies transiting through capital deepening can be considerably larger than the 5- to 10-year impacts. By contrast, the long-term impact of policies coming only via the employment rate channel materialises at shorter horizon.

Language
Englisch

Bibliographic citation
Series: CESifo Working Paper ; No. 6420

Classification
Wirtschaft
Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
General Aggregative Models: Forecasting and Simulation: Models and Applications
Investment; Capital; Intangible Capital; Capacity
Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
Labor Economics Policies
Subject
structural reforms
product markets
labour markets
regulation
simulation
multi-factor productivity
investment
employment
per capita impact
OECD

Event
Geistige Schöpfung
(who)
Egert, Balazs
Gal, Peter
Event
Veröffentlichung
(who)
Center for Economic Studies and ifo Institute (CESifo)
(where)
Munich
(when)
2017

Handle
Last update
10.03.2025, 11:44 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Egert, Balazs
  • Gal, Peter
  • Center for Economic Studies and ifo Institute (CESifo)

Time of origin

  • 2017

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