The Macroeconomic Effects of Goods and Labor Marlet Deregulation
研究商品和劳动力市场放松管制对宏观经济的影响，发现改革长期扩张但短期可能衰退，并降低商业周期的福利成本。
We study the macroeconomic effects of deregulating the goods and labor markets. To this end, we introduce endogenous product creation and labor market frictions in an otherwise-standard real business cycle model. Regulation affects producer entry costs, firing restrictions, and unemployment benefits. We find that reforms can have short-run recessionary effects, despite being expansionary in the long run. Estimates from a panel VAR for OECD countries provide empirical support for this result. Moreover, market deregulation has sizable effects on the efficiency of business cycle fluctuations. Increased flexibility in both goods and labor markets lowers the level and volatility of the inefficiency wedges that distort agents' equilibrium decisions, leading to a substantial reduction in the welfare cost of business cycles. Nevertheless, individual reforms produce contrasting effects. (Copyright: Elsevier)