Structural Reforms and Macroeconomic Performance in the Euro Area Countries: A Model-Based Assessment

Gomes, Sandra; Jacquinot, Pascal; Mohr, Matthias; Pisani, Massimiliano

doi:10.2139/ssrn.2004402

Cited by 56 publications

(31 citation statements)

References 135 publications

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“…The reform in the services sector induces an increase in real wages and, consequently, in the production costs of both tradables and non-tradables.17 Spillover effects on the REA and RW are positive along the transition and in the long run.However, they are relatively small when compared with German domestic effects, implying that the macroeconomic performance across the two regions is rather different. SeeGomes et al (2011).18 Results of reforming the labour market are reported in the working paper version. SeeGomes et al (2011).19 Results for the real wage are conditional on the relative size of the reforms.© 2013 John Wiley & Sons Ltd 34 S. Gomes et al…”

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Structural Reforms and Macroeconomic Performance in the Euro Area Countries: A Model‐Based Assessment

Gomes

Jacquinot

Mohr

et al. 2013

International Finance

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The recent financial crisis is likely to have damaged the potential output of many countries belonging to the euro area. Moreover, the heterogeneity in long‐run macroeconomic performance among Member States may not be sustainable in the presence of strong monetary and financial integration, thus suggesting the need for coordinating structural reforms. Using a multi‐country dynamic general equilibrium model of the euro area, we assess the macroeconomic effects of increasing competition in the labour and services markets in Germany and the rest of the euro area and, in an alternative scenario, Portugal and the rest of the euro area. Our main results suggest that (i) a unilateral increase in competition in the labour and services markets would increase long‐run output; and that (ii) cross‐country coordination would make the macroeconomic performance of the different regions more homogeneous, in terms of both price competitiveness and of real activity.

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confidence: 99%

“…SeeGomes et al (2011).18 Results of reforming the labour market are reported in the working paper version. SeeGomes et al (2011).19 Results for the real wage are conditional on the relative size of the reforms.© 2013 John Wiley & Sons Ltd 34 S. Gomes et al…”

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confidence: 99%

Structural Reforms and Macroeconomic Performance in the Euro Area Countries: A Model‐Based Assessment

Gomes

Jacquinot

Mohr

et al. 2013

International Finance

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180

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“…Most of the studies are conducted within the context of a general equilibrium framework with a monopolistic competitive setup, with the structural reforms typically focusing on product and labour markets. Within this framework, the impact of structural reforms is assessed through a reduction in mark-ups, with the latter being inversely related to the degree of competition within these markets (Blanchard & Giavazzi, 2003;Bayoumi et al, 2004;Everaert & Schule, 2008;Forni et al, 2010;Gomes et al, 2011;Lusinyan & Muir, 2013). Micallef (2013) applies a large scale multi-country DSGE model calibrated for Malta to assess the impact of structural reforms in domestic product and labour markets.…”

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confidence: 99%

A Sectoral Supply-Side Model to Assess the Impact of Labour Market Reforms in Malta

Micallef¹

2017

IJEF

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The Maltese economy recovered strongly after the financial crisis of 2009 and its labour market kept the pace with the rapid evolution of the economy since EU membership. This labour market resilience has to be seen in the context of important labour market reforms undertaken in recent years that have played an important role in raising the Maltese economy's potential growth rate. This paper presents a novel modelling approach to characterize the supply side of the Maltese economy. The model consists of a matrix transformation method using data on demography, education, labour market statistics from survey and administrative sources and gross value added from the National Accounts. This framework is used to quantitatively assess the economic impact of specific labour market policies, such as those pertaining to education and re-training, active labour market policies and inflows or outflows of workers from the labour market.

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“…Our paper is related to several contributions in the literature. Forni et al (2010a) and Lusinyan and Muir (2013) evaluate the macroeconomic impact of competitionfriendly reforms in Italy, and Gomes et al (2013) uses a dynamic general equilibrium model to test enhancing competition in the German labour market and services sector. Our results for the service-sector reforms are similar to theirs.…”

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confidence: 99%

Macroeconomic Effects of Simultaneous Implementation of Reforms

Gerali

Notarpietro

Pisani

2016

International Finance

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This paper evaluates the macroeconomic effects of simultaneously implementing growth-friendly fiscal consolidation and competitionfriendly reforms in one European country by simulating a dynamic general equilibrium model. Our results are as follows. First, in the case of joint implementation, the increase in gross domestic product (GDP) is larger than the sum of GDP increases obtained from implementing reforms separately. Growth-friendly public debt consolidation uses lower interest payments in the long run to permanently reduce tax Ã The views expressed in this paper are those of the authors alone and should not be attributed to the Bank of Italy. We thank

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Structural Reforms and Macroeconomic Performance in the Euro Area Countries: A Model-Based Assessment

Abstract: In 2011 all ECB publications feature a motif taken from the €100 banknote.

Cited by 56 publications

References 135 publications

Structural Reforms and Macroeconomic Performance in the Euro Area Countries: A Model‐Based Assessment

Structural Reforms and Macroeconomic Performance in the Euro Area Countries: A Model‐Based Assessment

A Sectoral Supply-Side Model to Assess the Impact of Labour Market Reforms in Malta

Macroeconomic Effects of Simultaneous Implementation of Reforms

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