Abstract
The role of product market reforms in achieving the objective of higher employment and growth has recently received much attention amongst academics. The aim of this paper is to analyse some of the channels through which cross-market effects come about and to assess their policy relevance. The analytic strategy of this paper relies upon the stochastic real options modelling approach. In a nutshell, our simulations using numerical methods indicate that comprehensive product market reforms would increase factor demand and growth significantly in the medium and long run. (C) 2007 Elsevier B.V. All rights reserved.
| Original language | English |
|---|---|
| Pages (from-to) | 218-238 |
| Number of pages | 21 |
| Journal | European Journal of Political Economy |
| Volume | 24 |
| Issue number | 1 |
| Publication status | Published - Mar 2008 |
Keywords
- product market competition
- regulation
- real options
- investment
- employment
- LABOR
- IRREVERSIBILITY
- UNEMPLOYMENT
- EQUILIBRIUM
- UNCERTAINTY
- COSTS
