Market Regulations, Prices, and Productivity
AbstractThis study is, to our knowledge, the first attempt to infer the consequences on productivity entailed by anticompetitive regulations in product and labor markets through their impacts on production prices and wages. Results show that changes in production prices and wages at country*industry levels are informative about the creation of rents impeding productivity in different ways and to different extents. A simulation based on OECD regulation indicators suggests that nearly all countries could expect sizeable gains in multifactor productivity from the implementation of large structural reform programs changing anticompetitive regulation practices on product and labor markets.
CitationCette, Gilbert, Jimmy Lopez, and Jacques Mairesse. 2016. "Market Regulations, Prices, and Productivity." American Economic Review, 106 (5): 104-08. DOI: 10.1257/aer.p20161025
- D24 Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
- J08 Labor Economics Policies
- L51 Economics of Regulation
- O47 Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence