American Economic Review Vol. 106 No. 5 2016

Market Regulations, Prices, and Productivity

Gilbert Cette¹; Jimmy Lopez²; Jacques Mairesse³

¹ Banque de France, 46-2400 DEMS 75049 Paris Cedex 01, France, Aix-Marseille School of Economics, CNRS, and EHESS (e-mail: ) · ² Université de Bourgogne-Franche-Comté, LEDi 2 boulevard Gabriel, BP 26611, 21066 DIJON cedex, France, LEDi, CNRS, INSERM, and Banque de France, (e-mail: ) · ³ CREST-ENSAE, Maastricht University (UNU-MERIT), CREST 15 Boulevard Gabriel Peri, Malakoff Cedex 1, 92245 France, Banque de France, and NBER (e-mail: )

Abstract

This study is, to our knowledge, the first attempt to infer the consequences on productivity entailed by anticompetitive regulations in product and labor markets through their impacts on production prices and wages. Results show that changes in production prices and wages at country*industry levels are informative about the creation of rents impeding productivity in different ways and to different extents. A simulation based on OECD regulation indicators suggests that nearly all countries could expect sizeable gains in multifactor productivity from the implementation of large structural reform programs changing anticompetitive regulation practices on product and labor markets.

DOI

10.1257/aer.p20161025

Volume

106

Issue

5

Pages

104-108

Language

en

Sources

bibtex:phds-export.bib openalex crossref

Cite

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