IMF Working Papers

Assessing the Macroeconomic Impact of Structural Reforms The Case of Italy

By Lusine Lusinyan, Dirk V Muir

January 24, 2013

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Lusine Lusinyan, and Dirk V Muir. Assessing the Macroeconomic Impact of Structural Reforms The Case of Italy, (USA: International Monetary Fund, 2013) accessed November 21, 2024
Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

Wide-ranging structural reforms are underway in Italy, aimed at addressing key bottlenecks in the product and labor markets. Our analysis, based on the IMF‘s Global Integrated Monetary and Fiscal model (GIMF), attempts to quantify the potential gains to the economy from a comprehensive package of structural reforms. We find that these gains can be sizeable. While in most cases, the reforms go in the right direction, their impact would depend on effective and timely implementation. In some areas, especially in the labor market, reforms would benefit from further strengthening. The priorities should be to strengthen competition in the non-tradable sector and make the labor market more efficient and inclusive, supported by growth-friendly fiscal reforms.

Subject: Commodity markets, Financial markets, Labor, Labor market reforms, Labor markets, Wages

Keywords: A. product markets, B. labor market, Commodity markets, Dynamic stochastic general equilibrium models, Europe, Expenditure switching, Firm, Fiscal policy, Global, Growth, Italy, Labor market, Labor market reform, Labor market reform bill, Labor market reform measure, Labor market reforms, Labor market rigidity, Labor markets, Macroeconomic policy coordination, Price markup, Product market, Product market competition, Product market reform, Reform measure, Reforms in Italy, Regulation indicator, Structural reforms, Unit labor cost, Wage markup, Wages, WP

Publication Details

  • Pages:

    59

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 2013/022

  • Stock No:

    WPIEA2013022

  • ISBN:

    9781475530865

  • ISSN:

    1018-5941

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