Benefits and spillovers of greater competition in Europe
Subtitle: a macroeconomic assessment
By: Tamim Bayoumi, Douglas Laxton, and Paolo Pesenti.
Contributors: Laxton, Douglas.; Pesenti, Paolo A.; Federal Reserve Bank of New York.
Series: Staff reports ;; no. 182; Staff reports (Federal Reserve Bank of New York : Online) ;; no. 182.
Publisher: Federal Reserve Bank of New York
Published: 2004
Place of publication: [New York, N.Y.]
Language: eng
Format: Electronic resource
Subjects: Competition -- European Union countries.; Taylor's rule.
Description: "We estimate the macroeconomic benefits and international spillovers of an increase in competition using a general-equilibrium simulation model with nominal rigidities and monopolistic competition in product and labor markets.  We draw three conclusions after calibrating the model to the euro area against the rest of the industrial world.  First, greater competition produces large effects on macroeconomic performance, as measured by standard indicators.  In particular, we show that differences in competition can account for more than half of the current gap in GDP per capita between the euro area and the United States.  Second, greater competition may improve macroeconomic management by increasing the responsiveness of wages and prices to market conditions.  Third, increased competition can generate positive spillovers to the rest of the world through its impact on the terms of trade"--Federal Reserve Bank of New York web site.
Notes: Includes bibliographical references.
Title from PDF file as viewed on 2/15/2005.
System requirements: Adobe Acrobat Reader.
Mode of access: World Wide Web.