Innovation and Structural Reforms
Saturday, Jan. 6, 2018 8:00 AM - 10:00 AM
- Chair: Catherine L. Mann, OECD
Innovation and Structural Policies and Growth: Evidence From Small and Large OECD Countries?
AbstractThis paper aims to quantify the impact of innovation and structural policies on per capita income in
OECD countries. The paper first seeks to link inputs on basic (Nobel prize winners) and applied
research (R&D spending) to innovation outcomes (patents). It then analyses the effect of innovation
outcomes and product and labour market reforms, and the interaction of these policies, on multi-factor
productivity, physical capital and employment. The paper then raises the question whether innovation
policies and structural reforms have different effects in small countries. Finally, the paper quantifies
the overall macroeconomic impact of past reforms for small and large OECD countries.
Why Do Reforms Occur in Crisis Times?
AbstractStructural reforms, whereby organized groups lose their power to extract rents, tend to occur in bad
times rather than during prosperous times. We present a model where rent-seeking leads to economic
decline, which, in turn, will make a future reform inevitable when times will be bad enough.
Furthermore, we show that in the case of trade liberalization–a prime example of structural reform–
there is strong empirical evidence that reforms are induced by severe crises.
Business Cycle Sinchronization in a Currency Union: Taking Stock of the Evidence
AbstractThe objective of this paper is to systematically evaluate the econometric evidence on the effects of the introduction of the euro. We constructed a new hand-collected data set comprising estimation and research design features for almost 3000 estimates of business cycles synchronization from more than 60 studies. Our main findings are that: (1) business cycles correlation coefficients increased from about 0.4 before the euro to approximately 0.6 after. (2) This increase happened in euro (core and periphery) and in non-euro countries. (3) The country for which synchronization has not risen significantly after the euro is Greece. (4) Using meta-regression analysis, we identify key factors; for example, using quarterly data and the Blanchard-Quah decomposition systematically lowers estimated synchronization coefficients. (5) There is evidence of publication bias but it seems to be mostly country-specific.
- E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook
- O3 - Innovation; Research and Development; Technological Change; Intellectual Property Rights