Author (Corporate) | European Commission: DG Economic and Financial Affairs |
---|---|
Series Title | European Economy: Economic Papers |
Series Details | No.218, December 2004 |
Publication Date | December 2004 |
ISBN | 92-894-8365-2 |
ISSN | 1725-3187 |
EC | KC-AI-04-218-EN- |
Content Type | Journal | Series | Blog, Report |
Product market reforms are structural reforms of microeconomic type that aim at improving the functioning of product markets by increasing competition amongst producers of goods and services. Theoretical models suggest that regulation and reforms which liberalise or improve the functioning of markets can positively affect productivity through three different channels, namely a reallocation of scarce resources (allocative efficiency), an improvement in the utilisation of the production factors by firms (productive efficiency) and an incentive for firms to innovate to move to the modern technology frontier (dynamic efficiency). This paper reviews the theoretical and empirical literature on these three channels. |
|
Source Link | Link to Main Source http://ec.europa.eu/economy_finance/publications/publication_summary534_en.htm |
Countries / Regions | Europe |