Market Distortions, Structural Reforms and Employment
Tax reform, product market liberalisation and deregulation in the labour markets are widely seen as the keys to an improved economic performance – particularly in Europe. Yet, the academic literature has seen very little formal analysis of the reform process, or of how far structural reforms could be expected to improve economic performance in practice. Similarly, many countries have proved reluctant to actually embrace such reforms, despite being happy enough to extol their virtues in public debate. These inconsistencies need explanation.
The Impact of Tax and Market Distortions on the Phillips Curve and the Natural Rate of Unemployment, Economics e-journal, Vol. 2, 2008-27, September 8, 2008, Nikola Bokan & Andrew Hughes Hallett