Benefits and spillovers of greater competition in Europe : a macroeconomic assessment / Tamim Bayoumi, Douglas Laxton, Paolo Pesenti Bayoumi, Tamim A

User activity

Share to:
View the summary of this work
Author
Bayoumi, Tamim A
Subjects
Competition - Markups - Monetary policy - Taylor rule.; Competition - European Union countries.; Taylor's rule.
Summary
"We estimate the macroeconomic benefits and international spillovers of an increase in competition using a general-equilibrium simulation model with nominal rigidities and monopolistic competition in product and labor markets. We draw three conclusions after calibrating the model to the euro area against the rest of the industrial world. First, greater competition produces large effects on macroeconomic performance, as measured by standard indicators. In particular, we show that differences in competition can account for more than half of the current gap in GDP per capita between the euro area and the United States. Second, greater competition may improve macroeconomic management by increasing the responsiveness of wages and prices to market conditions. Third, increased competition can generate positive spillovers to the rest of the world through its impact on the terms of trade"--Federal Reserve Bank of New York web site.
Bookmark
http://trove.nla.gov.au/work/3251356
Work ID
3251356

User activity


e.g. test cricket, Perth (WA), "Parkes, Henry"

Separate different tags with a comma. To include a comma in your tag, surround the tag with double quotes.

Be the first to add a tag for this work

Be the first to add this to a list

Comments and reviews

What are comments? Add a comment

No user comments or reviews for this work

Add a comment


Show comments and reviews from Amazon users