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Volker Ziemann (Translation ed. by: Marina Larionova 1)
  • 1 RANEPA, 11 Prechistenskaya naberezhnaya, Moscow, 119034, Russia

Do Structural Policy Affect Macroeconomic Stubility?

2013. Vol. 8. No. 4. P. 40–76 [issue contents]

Ziemann Volker –Economist, Public Economic Division, OECD, 2, rue André Pascal, 75775 Paris Cedex 16, France; E-mail: Volker.ziemann@oecd.org


This study assesses the linkages between structural policies and macroeconomic stability using a panel of OECD countries. Business cycle and time-series characteristics of GDP and its components are employed to define various measures for economic instability and for the persistence of adverse shocks. The notion of macroeconomic stability is assessed through two statistical exercises. First, time-series statistics and characteristics of growth distributions across the OECD are explored. Second, resilience and persistence patterns following macroeconomic shocks are investigated building on business cycle features.

Besides disentangling positive and negative shocks and providing a broader definition of macroeconomic stability, the present empirical setup demonstrates that the interaction between policies and outcomes is lagged rather than instantaneous. Policy settings are related to macroeconomic stability over the subsequent 5-year period.

The findings suggest that some growth-enhancing policies such as lowering employment protection also reduce macroeconomic fluctuations, while others (such as the design of a counter-cyclical tax system) may generate trade-offs between growth and stability. A pro-cyclical tax structure seems to help alleviating the persistence of adverse macroeconomic shocks.


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Citation: (2013) Vliianie strukturnoi politiki na makroekonomicheskuiu stabil'nost' [Do Structural Policy Affect Macroeconomic Stubility?] INTERNATIONAL ORGANISATIONS RESEARCH JOURNAL, 4, pp. 40-76 (in Russian)
Keywords: structural reforms
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