Institutions, restructuring, and macroeconomic performance
By: Ricardo J. Caballero [and] Mohamad L. Hammour
Contributors: Hammour, Mohamad L.; Massachusetts Institute of Technology. Dept. of Economics
Series: Working paper / Department of Economics -- no. 00-02; Working paper (Massachusetts Institute of Technology. Dept. of Economics) -- no. 00-02.
Publisher: Dept. of Economics, Massachusetts Insitute of Technology
Published: 2000
Place of publication: Cambridge, Mass
Language: eng
Number of pages: 39
Description: A growing body of new research has emphasized the macroeconomic consequences of transactional impediments in factor markets, and their role in the recurrent restructuring requirements of modern economies. We first review the function institutional arrangements play in facilitating transactions and explore the macroeconomic consequences of poor institutions. As an application, we discuss the lessons that can be learnt from observed changes in the nature of unemployment in Europe. We then analyze the effect the institutional environment can have on macroeconomic restructuring. In light of this framework, we revisit the question of the relationship between recessions and restructuring activity, and review the recent evidence of reduced restructuring following recessions. We also discuss corroborating evidence from "merger waves" in the restructuring of corporate assets. JEL Classification: E0, E24, E32, E44, G32, G33, J50.
Notes: "January 2000."; "Revised draft: January 11, 2000"--Abstract.

Includes bibliographical references (p. [37]-39).

Abstract in HTML and working paper for download in PDF available via World Wide Web at the Social Science Research Network.

MIT Institute Archives and Dewey Library copies missing p. 35-36.