Market regulations, prices, and productivity

G. Cette*, J. Lopez, J. Mairesse

*Corresponding author for this work

Research output: Contribution to journalArticleAcademicpeer-review

Abstract

This 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.
Original languageEnglish
Pages (from-to)104-108
Number of pages5
JournalAmerican Economic Review
Volume106
Issue number5
DOIs
Publication statusPublished - May 2016

JEL classifications

  • g18 - General Financial Markets: Government Policy and Regulation
  • p42 - "Other Economic Systems: Productive Enterprises; Factor and Product Markets; Prices; Population"
  • o47 - "Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence"

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