Structural Reform Packages, Sequencing, and the Informal Economy.

By:

Munkacsi, Zsuzsa

Contributor(s):

Saxegaard, Magnus

Material type: Text

TextPublication details: Washington, D.C. : International Monetary Fund, 2017.Description: 1 online resource (55 pages)Content type:

text

Media type:

computer

Carrier type:

online resource

ISBN:

9781484302309
1484302303

Subject(s):

Genre/Form:

Electronic books.

Additional physical formats: Print version:: Structural Reform Packages, Sequencing, and the Informal Economy.DDC classification:

330 23

LOC classification:

HD2341

Online resources:

EBSCOhost

Contents:

Cover; Structural Reform Packages, Sequencing, and the Informal Economy; 1. Motivation and literature; 2. The model; 3. Calibration and Bayesian estimation; 4. Long- and short-run effects of deregulation policies in South-Africa; 5. Conclusion.

Abstract: This paper explores the macroeconomic impacts of labor and product market deregulation using a small open-economy model with formal and informal markets. We examine both the long-run effects and the transition towards the post-reform equilibrium, while our main focus are reform packages and sequencing. The unofficial sector is a major determinant of the sign, and, in particular, the magnitude of responses. South Africa, an emerging country, is considered when Bayesian estimating the model. Regarding the long run, both labor and product market reforms considerably increase output, although labor market reforms are more successful in decreasing unemployment. Nevertheless, there are short-term costs, for example, a decrease in household consumption, net exports or output, or a decrease in competition. Combining reforms, especially with product market deregulation, are good at reducing short-term costs. Finally, concerning the speed of adjustment, it is usually better to start with a labor market reform.

Holdings ( 1 )
Title notes ( 4 )

Holdings
Item type	Current library	Collection	Call number	Status	Date due	Barcode	Item holds
eBook	e-Library	EBSCO Business		Available

Total holds: 0

Print version record.

This paper explores the macroeconomic impacts of labor and product market deregulation using a small open-economy model with formal and informal markets. We examine both the long-run effects and the transition towards the post-reform equilibrium, while our main focus are reform packages and sequencing. The unofficial sector is a major determinant of the sign, and, in particular, the magnitude of responses. South Africa, an emerging country, is considered when Bayesian estimating the model. Regarding the long run, both labor and product market reforms considerably increase output, although labor market reforms are more successful in decreasing unemployment. Nevertheless, there are short-term costs, for example, a decrease in household consumption, net exports or output, or a decrease in competition. Combining reforms, especially with product market deregulation, are good at reducing short-term costs. Finally, concerning the speed of adjustment, it is usually better to start with a labor market reform.

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