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Macroeconomic Effects of Regulation and Deregulation in Goods and Labor Markets
Abstract
Product and labor market deregulation reduce and redistribute rents, leading economic players to adjust to this new distribution. It typically comes with distribution and dynamic effects. To study these effects, we build a macroeconomic model on two central assumptions: monopolistic competition in the goods market, which determines the size of rents; and bargaining in the labor market, which determines the distribution of rents. Product market regulation determines entry costs and the degree of competition. Labor market regulation determines the bargaining power of workers. We show the effects of deregulation. We then use our results to discuss the political economy of deregulation, and recent macroeconomic evolutions in Europe.
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Blanchard, O. J., Nordhaus, W. D., & Phelps, E. S. (1997) · Brookings Papers on Economic Activity · doi:10.2307/2534687 · Cited by 588
Self-citation
Cited by
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Metadata
- Authors
- Blanchard, O., & Giavazzi, F.
- Venue
- The Quarterly Journal of Economics
- Publisher
- Oxford University Press (OUP)
- Published
- 2003-08-01
- Volume
- 118
- Issue
- 3
- Pages
- 879-907
- ISSN
- 0033-5533 (ISSN-L)
- 1531-4650
- OpenAlex
- W3125732952
- Cited by
- 1,104
- References
- 1
- FWCI
- 92.46
- Type
- journal article
- Language
- en
- Open access
- closed
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Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
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