- Additional Authors
- Vogel, Lukas Lukas .
- Found In
- OECD Journal: Economic Studies Vol. 2008, no. 1, p. 1-38 1995-2856
- Description
- 38 p.
- Summary
- Cyclical fluctuations in economic activity have moderated over time but the extent and dynamics of volatility remain different across OECD countries. A reason behind this heterogeneity is that countries exhibit different degrees of resilience in the face of common shocks. This paper traces divergences in resilience back to different policy settings and institutions in labour, product and financial markets. Using pooled regression analysis across 20 OECD countries over the period 1982-2003, the paper identifies the impact of policy settings on two dimensions of resilience: the impact effect of a shock and its subsequent persistence. Policies and institutions associated with rigidities in labour and product markets are found to dampen the initial impact of shocks but to make their effects more persistent, while policies allowing for deep mortgage markets lower persistence and thereby improve resilience. Combining these two dimensions of resilience, the paper then uses the estimated equations to derive indicators of resilience for the OECD countries concerned, based on their current or recent policy settings. Three groups of countries emerge. In English-speaking countries, simulations suggest shocks have a significant initial effect on activity but this impact then dies out relatively quickly. By contrast, in many continental European countries the initial impact of shocks is cushioned but their effect linger for longer, with the cumulated output loss tending to be larger than in English-speaking countries. Finally a few, mostly small, European countries combine cushioning of the initial shock with a fairly quick return to baseline.
- Subject
- Economics
- LCCN
- 10.1787/eco_studies-v2008-art6-en
- OCLC
- oecd-lib-001784
- Author
Duval, Romain.
- Title
Economic resilience to shocks [electronic resource]: The role of structural policies / Romain Duval and Lukas Lukas Vogel
- Imprint
Paris : OECD Publishing, 2008.
- Connect to:
- Indexed Term
Economics
- Added Author
Vogel, Lukas Lukas .
- Found In:
OECD Journal: Economic Studies Vol. 2008, no. 1, p. 1-38 2008:1<1 1995-2856
- Other Editions:
Résilience économique aux chocs : Le rôle des politiques structurelles fre (FR-PaOEC)9789264053656-6-fr
- Other Standard Identifier
10.1787/eco_studies-v2008-art6-en doi