How fast does product market reform pay off? New evidence from non-manufacturing industry deregulation in advanced economies

Bouis, Romain; Akcigit, Ufuk; Eugster, Johannes

doi:10.1016/j.jce.2019.09.006

Cited by 18 publications

(17 citation statements)

References 38 publications

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“…Similarly, the lags of clean innovation are included to differentiate the effect of policies from the ones of the time series proprieties of the dependent variable. The inclusion of such controls is consistent with the literature (e.g Furceri et al 2019, Bouis et al 2020,. but results are robust to reasonable changes in the lag length.©International Monetary Fund.…”

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confidence: 86%

The Impact of Environmental Policy on Innovation in Clean Technologies

Eugster¹

2021

IMF Working Papers

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This paper studies the effect of climate change mitigating policies on innovation in clean energy technologies. Results suggest that the tightening of environmental policies since the early 1990s have made a statistically and economically significant contribution to the increase in clean innovation. These effects generally materialized quickly, within 2 to 3 years of the policy change, and were driven by individually significant marginal effects of both market-based policies -such as feed-in tariffs and trading schemes -as well as non-market policies, such as R&D subsidies or emission limits. Looking at electricity innovation in particular, the paper finds that the estimated effect on total innovation is positive on net, meaning that increased innovation in clean and grey technologies is not offset by a decrease in innovation in dirty technologies. From a policy point of view, the paper's results call for strong policy efforts to decisively shift innovation towards clean technologies.

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confidence: 86%

The Impact of Environmental Policy on Innovation in Clean Technologies

Eugster¹

2021

IMF Working Papers

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“…This dummy is omitted for reforms in EPL for regular contracts as it does not coincide with a single reform in that area. We also use data on EU directives in product markets, taken from Bouis et al (2020), who in turn construct them using the comprehensive historical list of all single‐market directives available on the European Commission website; specifically, we include the number of directives from t‐3 to t‐1. This variable is only used in the variable list for product market reforms.…”

Section: Reform Identification and Datamentioning

confidence: 99%

Robust political economy correlates of major product and labor market reforms in advanced economies: Evidence from BAMLE for logit models

Akcigit

Furceri

Miethe

2020

J of Applied Econometrics

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Summary The political economy literature has put forward a multitude of hypotheses regarding the drivers of structural reforms, but few, if any, empirically robust findings have emerged thus far. To make progress, we draw a parallel with model uncertainty in the growth literature and provide a new version of the Bayesian averaging of maximum likelihood estimates (BAMLE) technique tailored to binary logit models. Relying on a new database of major past labor and product market reforms in advanced countries, we test a large set of variables for robust correlation with reform in each area. We find widespread support for the crisis‐induces‐reform hypothesis, as high unemployment and economic crises are robustly correlated to structural reforms. We also find evidence of reform convergence—that is, countries with tighter regulation are more prone to liberalize. Reforms are more likely when other countries also undertake them and when there is formal pressure to implement them. Other robust correlates are more specific to certain areas—for example, international pressure and political factors are most relevant for product market and job protection reforms, respectively.

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“…Empirical studies show that reforms promote economic growth. This holds for manifold types of reforms including product market deregulation (Bouis et al 2019) and reforms that fostered trade and deregulation of financial markets (Dreher 2006;Billmeier and Nannicini 2013;Gygli et al 2019). Trade and financial liberalization tend to promote economic growth quite fast (Dreher 2006;Gygli et al 2019).…”

Section: Reforms and Growthmentioning

confidence: 99%