Growth Equity Trade Offs In Structural Reforms

Author : Mr.Jonathan David Ostry,Mr.Andrew Berg,Siddharth Kothari
Publisher : International Monetary Fund
Page : 46 pages
File Size : 54,8 Mb
Release : 2018-01-05
Category : Business & Economics
ISBN : 9781484336809

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Growth-Equity Trade-offs in Structural Reforms by Mr.Jonathan David Ostry,Mr.Andrew Berg,Siddharth Kothari Pdf

Do structural reforms that aim to boost potential output also change the distribution of income? We shed light on this question by looking at the broad patterns in the cross-country data covering advanced, emerging-market, and low-income countries. Our main finding is that there is indeed evidence of a growth-equity tradeoff for some important reforms. Financial and capital account liberalization seem to increase both growth and inequality, as do some measures of liberalization of current account transactions. Reforms aimed at strengthening the impartiality of and adherence to the legal system seem to entail no growth-equity tradeoff—such reforms are good for growth and do not worsen inequality. The results for our index of network reforms as well as our measure of the decentralization of collective labor bargaining are the weakest and least robust, potentially due to data limitations. We also ask: If some structural reforms worsen inequality, to what degree does this offset the growth gains from the reforms themselves? While higher inequality does dampen the growth benefits, the net effect on growth remains positive for most reform indicators.

Author : Charles R. Hulten,Valerie A. Ramey
Publisher : University of Chicago Press
Page : 528 pages
File Size : 55,5 Mb
Release : 2018-12-26
Category : Business & Economics
ISBN : 9780226567808

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Education, Skills, and Technical Change by Charles R. Hulten,Valerie A. Ramey Pdf

Over the past few decades, US business and industry have been transformed by the advances and redundancies produced by the knowledge economy. The workplace has changed, and much of the work differs from that performed by previous generations. Can human capital accumulation in the United States keep pace with the evolving demands placed on it, and how can the workforce of tomorrow acquire the skills and competencies that are most in demand? Education, Skills, and Technical Change explores various facets of these questions and provides an overview of educational attainment in the United States and the channels through which labor force skills and education affect GDP growth. Contributors to this volume focus on a range of educational and training institutions and bring new data to bear on how we understand the role of college and vocational education and the size and nature of the skills gap. This work links a range of research areas—such as growth accounting, skill development, higher education, and immigration—and also examines how well students are being prepared for the current and future world of work.

Author : Mr.Jonathan David Ostry,Mr.Andrew Berg,Siddharth Kothari
Publisher : International Monetary Fund
Page : 46 pages
File Size : 46,6 Mb
Release : 2018-01-05
Category : Business & Economics
ISBN : 9781484336984

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Growth-Equity Trade-offs in Structural Reforms by Mr.Jonathan David Ostry,Mr.Andrew Berg,Siddharth Kothari Pdf

Do structural reforms that aim to boost potential output also change the distribution of income? We shed light on this question by looking at the broad patterns in the cross-country data covering advanced, emerging-market, and low-income countries. Our main finding is that there is indeed evidence of a growth-equity tradeoff for some important reforms. Financial and capital account liberalization seem to increase both growth and inequality, as do some measures of liberalization of current account transactions. Reforms aimed at strengthening the impartiality of and adherence to the legal system seem to entail no growth-equity tradeoff—such reforms are good for growth and do not worsen inequality. The results for our index of network reforms as well as our measure of the decentralization of collective labor bargaining are the weakest and least robust, potentially due to data limitations. We also ask: If some structural reforms worsen inequality, to what degree does this offset the growth gains from the reforms themselves? While higher inequality does dampen the growth benefits, the net effect on growth remains positive for most reform indicators.

Author : Mr. Andrew Berg,Lahcen Bounader,Nikolay Gueorguiev,Hiroaki Miyamoto,Mr. Kenji Moriyama,Ryota Nakatani,Luis-Felipe Zanna
Publisher : International Monetary Fund
Page : 44 pages
File Size : 41,5 Mb
Release : 2021-07-16
Category : Business & Economics
ISBN : 9781513592961

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For the Benefit of All: Fiscal Policies and Equity-Efficiency Trade-offs in the Age of Automation by Mr. Andrew Berg,Lahcen Bounader,Nikolay Gueorguiev,Hiroaki Miyamoto,Mr. Kenji Moriyama,Ryota Nakatani,Luis-Felipe Zanna Pdf

Many studies predict massive job losses and real wage decline as a result of the ongoing widespread automation of production, a trend that may be further aggravated by the COVID-19 crisis. Yet automation is also expected to raise productivity and output. How can we share the gains from automation more widely, for the benefit of all? And what are the attendant equity-efficiency trade-offs? We analyze this issue by considering the effects of fiscal policies that seek to redistribute the gains from automation and address income inequality. We use a dynamic general equilibrium model with monopolistic competition, including a novel specification linking corporate power to automation. While fiscal policy cannot eliminate the classic equity-efficiency trade-offs, it can help improve them, reducing inequality at small or no loss of output. This is particularly so when policy takes advantage of novel, less distortive transmission channels of fiscal policy created by the empirically observed link between corporate market power and automation.

Author : Mrs. Nina Budina,Mr. Christian H Ebeke,Ms. Florence Jaumotte,Andrea Medici,Augustus J Panton,Marina M. Tavares,Bella Yao
Publisher : International Monetary Fund
Page : 48 pages
File Size : 55,9 Mb
Release : 2023-09-22
Category : Business & Economics
ISBN : 9798400250095

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Structural Reforms to Accelerate Growth, Ease Policy Trade-offs, and Support the Green Transition in Emerging Market and Developing Economies by Mrs. Nina Budina,Mr. Christian H Ebeke,Ms. Florence Jaumotte,Andrea Medici,Augustus J Panton,Marina M. Tavares,Bella Yao Pdf

In the aftermath of the COVID-19 pandemic, emerging market and developing economies are grappling with economic scarring, social tension, and reduced policy space. Policy actions are already urgently needed to boost growth in the near term and support the ongoing green transition. At the same time, high public debt and persistently high inflation have constrained policy space, posing difficult policy trade-offs. This Staff Discussion Note focuses on emerging market and developing economies and proposes a framework for prioritization, packaging, and sequencing of macrostructural reforms to accelerate growth, alleviate policy trade-offs, and support the green transition. The note shows that prioritizing the removal of the most binding constraints on economic activity, bundling reforms (governance, business deregulation, and external sector reforms), and appropriate sequencing of other reforms (such as labor market and credit sector reforms) can help front-load reform gains. In emerging market and developing economies with large initial structural gaps, the estimated output effects of such a major reform package are sizable—about 4 percent in two years and 8 percent in four years. Achieving higher growth and lower absolute carbon emissions over time requires a well-designed strategy that includes both macrostructural and green reforms.

Author : Jorge M. Katz,United Nations. Economic Commission for Latin America and the Caribbean
Publisher : United Nations Publications
Page : 164 pages
File Size : 46,8 Mb
Release : 2001
Category : Business & Economics
ISBN : UCSD:31822029884582

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Structural Reforms, Productivity and Technological Change in Latin America by Jorge M. Katz,United Nations. Economic Commission for Latin America and the Caribbean Pdf

In the last ten to fifteen years, profound structural reforms have moved Latin America and the Caribbean from closed, state-dominated economies to ones that are more market-oriented and open. Policymakers expected that these changes would speed up growth. This book is part of a multi-year project to determine whether these expectation have been fulfilled. Focusing on technological change, the impact of the reforms on the process of innovation is examined. It notes that the development process is proving to be highly heterogenous across industries, regions and firms and can be described as strongly inequitable. This differentiation that has emerged has implications for job creation, trade balance, and the role of small and medium sized firms. This ultimately suggests, amongst other things, the need for policies to better spread the use of new technologies.

Author : Ms.Sweta Chaman Saxena,Mr.Chris Papageorgiou,Ms.Deniz O Igan
Publisher : International Monetary Fund
Page : 18 pages
File Size : 54,6 Mb
Release : 2018-06-18
Category : Business & Economics
ISBN : 9781484362242

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IMF Research Perspectives by Ms.Sweta Chaman Saxena,Mr.Chris Papageorgiou,Ms.Deniz O Igan Pdf

IMF Research Perspective (formerly published as IMF Research Bulletin) is a new, redesigned online newsletter covering updates on IMF research. In the inaugural issue of the newsletter, Hites Ahir interviews Valeria Cerra; and they discuss the economic environment 10 years after the global financial crisis. Research Summaries cover the rise of populism; economic reform; labor and technology; big data; and the relationship between happiness and productivity. Sweta C. Saxena was the guest editor for this inaugural issue.

Author : McMillan, Margaret ,Rodrik, Dani,Sepúlveda, Claudia
Publisher : Intl Food Policy Res Inst
Page : 328 pages
File Size : 54,5 Mb
Release : 2017-05-11
Category : Political Science
ISBN : 9780896292147

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Structural change, fundamentals, and growth : a framework and case studies by McMillan, Margaret ,Rodrik, Dani,Sepúlveda, Claudia Pdf

Author : International Monetary Fund. Communications Department
Publisher : International Monetary Fund
Page : 64 pages
File Size : 52,8 Mb
Release : 2018-06-18
Category : Business & Economics
ISBN : 9781484357415

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Finance & Development, June 2018 by International Monetary Fund. Communications Department Pdf

This paper focuses on smart policies that can alleviate the short-term pain of technological disruption and pave the way for long-term gain. As computing power improves dramatically and more and more people around the world participate in the digital economy, care should be taken about how to devise policies that will allow us to fully exploit the digital revolution’s benefits while minimizing job dislocation. Digital technology will spread further, and efforts to ignore it or legislate against it will likely fail. Even with short-term dislocations, reorganizing the economy around revolutionary technologies generates huge long-term benefits. The digital revolution should be accepted and improved rather than ignored and repressed. Given the global reach of digital technology, and the risk of a race to the bottom, there is a need for policy cooperation like that of global financial markets and sea and air traffic. The history of earlier general-purpose technologies demonstrates that even with short-term dislocations, reorganizing the economy around revolutionary technologies generates huge long-term benefits.

Author : Mrs.Paola Ganum,Mr.Vimal V Thakoor
Publisher : International Monetary Fund
Page : 33 pages
File Size : 40,9 Mb
Release : 2021-02-19
Category : Business & Economics
ISBN : 9781513570044

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Post-Covid-19 Recovery and Resilience: Leveraging Reforms for Growth and Inclusion in Sub-Saharan Africa by Mrs.Paola Ganum,Mr.Vimal V Thakoor Pdf

Covid-19 has exacerbated economic and social vulnerabilities across Sub-Saharan Africa (SSA). There is a risk that growth could be lower for longer, with a setback to development. Post-pandemic reforms thus become even more important, especially with constrained scope for fiscal and monetary stimuli. Reforms could boost per capita growth by an additional 0.3-1.3 percentage points, relative to the 1.9 percent average since 2010. Such growth would reduce per capita income doubling time from 37 years to about 22 years. Low-income countries stand to gain the most from reforms. The largest gains come from governance, products markets, and factor accumulation. Importantly, these reforms can be implemented in the post-pandemic environment characterized by weaker social and distributional outcomes.

Author : Economic and Social Commission for Asia and the Pacific
Publisher : United Nations
Page : 122 pages
File Size : 52,8 Mb
Release : 2019-06-23
Category : Business & Economics
ISBN : 9789210479387

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Economic and Social Survey of Asia and the Pacific 2019 by Economic and Social Commission for Asia and the Pacific Pdf

The region has seen tremendous economic and social progress over the last 50 years, However, despite progress on many fronts, the region is not on track to meet many of the Sustainable Development Goals (SDGs). The gains from economic growth are not being shared by all. Available jobs do not fully translate into decent work. The region is home to five of the world’s 10 countries most affected by climate risks. Policies are needed to maintain growth momentum while enhancing the drivers of sustainable development. The Survey explores the critical role of investment for SDG requirements.

Author : Mr. Zamid Aligishiev,Ms. Gabriela Cugat,Mr. Romain A Duval,Davide Furceri,João Tovar Jalles,Ms. Margaux MacDonald,Mr. Giovanni Melina,Mr. Futoshi Narita,Mr. Chris Papageorgiou,Carlo Pizzinelli
Publisher : International Monetary Fund
Page : 45 pages
File Size : 55,6 Mb
Release : 2023-09-12
Category : Business & Economics
ISBN : 9798400247101

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Market Reforms and Public Debt Dynamics in Emerging Market and Developing Economies by Mr. Zamid Aligishiev,Ms. Gabriela Cugat,Mr. Romain A Duval,Davide Furceri,João Tovar Jalles,Ms. Margaux MacDonald,Mr. Giovanni Melina,Mr. Futoshi Narita,Mr. Chris Papageorgiou,Carlo Pizzinelli Pdf

Many emerging market and developing economies face a difficult trade-off between economic support and fiscal sustainability. Market-oriented structural reforms ease this trade-off by promoting economic growth and strengthening public finances. The empirical analysis in this note, based on 62 EMDEs over 1973-2014, shows that reforms are associated with sizeable and long-lasting reductions in the debt-to-GDP ratio mainly through higher fiscal revenues and lower borrowing costs. These effects are larger in countries with greater tax efficiency, lower informality, and higher initial debt. Moreover, a model-based analysis elaborates on how such fiscal gains can be enhanced when revenue windfalls associated with reforms are saved or channeled through higher public investment.

Author : Karen Petrou
Publisher : John Wiley & Sons
Page : 288 pages
File Size : 52,6 Mb
Release : 2021-03-05
Category : Business & Economics
ISBN : 9781119727538

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Engine of Inequality by Karen Petrou Pdf

The first book to reveal how the Federal Reserve holds the key to making us more economically equal, written by an author with unparalleled expertise in the real world of financial policy Following the 2008 financial crisis, the Federal Reserve’s monetary policy placed much greater focus on stabilizing the market than on helping struggling Americans. As a result, the richest Americans got a lot richer while the middle class shrank and economic and wealth inequality skyrocketed. In Engine of Inequality, Karen Petrou offers pragmatic solutions for creating more inclusive monetary policy and equality-enhancing financial regulation as quickly and painlessly as possible. Karen Petrou is a leading financial-policy analyst and consultant with unrivaled knowledge of what drives the decisions of federal officials and how big banks respond to financial policy in the real world. Instead of proposing legislation that would never pass Congress, the author provides an insider's look at politically plausible, high-impact financial policy fixes that will radically shift the equality balance. Offering an innovative, powerful, and highly practical solution for immediately turning around the enormous nationwide problem of economic inequality, this groundbreaking book: Presents practical ways America can and should tackle economic inequality with fast-acting results Provides revealing examples of exactly how bad economic inequality in America has become no matter how hard we all work Demonstrates that increasing inequality is disastrous for long-term economic growth, political action, and even personal happiness Explains why your bank's interest rates are still only a fraction of what they were even though the rich are getting richer than ever, faster than ever Reveals the dangers of FinTech and BigTech companies taking over banking Shows how Facebook wants to control even the dollars in your wallet Discusses who shares the blame for our economic inequality, including the Fed, regulators, Congress, and even economists Engine of Inequality: The Fed and the Future of Wealth in America should be required reading for leaders, policymakers, regulators, media professionals, and all Americans wanting to ensure that the nation’s financial policy will be a force for promoting economic equality.

Author : Ms.Stefania Fabrizio,Davide Furceri,Mr.Rodrigo Garcia-Verdu,Bin Grace Li,Mrs.Sandra V Lizarazo Ruiz,Ms.Marina Mendes Tavares,Mr.Futoshi Narita,Adrian Peralta-Alva
Publisher : International Monetary Fund
Page : 128 pages
File Size : 46,8 Mb
Release : 2017-01-26
Category : Business & Economics
ISBN : 9781475570458

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Macroeconomic Structural Policies and Income Inequality in Low-Income Developing Countries by Ms.Stefania Fabrizio,Davide Furceri,Mr.Rodrigo Garcia-Verdu,Bin Grace Li,Mrs.Sandra V Lizarazo Ruiz,Ms.Marina Mendes Tavares,Mr.Futoshi Narita,Adrian Peralta-Alva Pdf

Despite sustained economic growth and rapid poverty reductions, income inequality remains stubbornly high in many low-income developing countries. This pattern is a concern as high levels of inequality can impair the sustainability of growth and macroeconomic stability, thereby also limiting countries’ ability to reach the Sustainable Development Goals. This underscores the importance of understanding how policies aimed at boosting economic growth affect income inequality. Using empirical and modeling techniques, the note confirms that macro-structural policies aimed at raising growth payoffs in low-income developing countries can have important distributional consequences, with the impact dependent on both the design of reforms and on country-specific economic characteristics. While there is no one-size-fits-all recipe, the note explores how governments can address adverse distributional consequences of reforms by designing reform packages to make pro-growth policies also more inclusive.

Author : Arthur M. Okun
Publisher : Brookings Institution Press
Page : 171 pages
File Size : 52,9 Mb
Release : 2015-04-30
Category : Business & Economics
ISBN : 9780815726548

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Equality and Efficiency REV by Arthur M. Okun Pdf

Originally published in 1975, Equality and Efficiency: The Big Tradeoff is a very personal work from one of the most important macroeconomists of the last hundred years. And this new edition includes "Further Thoughts on Equality and Efficiency," a paper published by the author two years later. In classrooms Arthur M. Okun may be best remembered for Okun's Law, but his lasting legacy is the respect and admiration he earned from economists, practitioners, and policymakers. Equality and Efficiency is the perfect embodiment of that legacy, valued both by professional economists and those readers with a keen interest in social policy. To his fellow economists, Okun presents messages, in the form of additional comments and select citations, in his footnotes. To all readers, Okun presents an engaging dual theme: the market needs a place, and the market needs to be kept in its place. As Okun puts it: Institutions in a capitalist democracy prod us to get ahead of our neighbors economically after telling us to stay in line socially. This double standard professes and pursues an egalitarian political and social system while simultaneously generating gaping disparities in economic well-being. Today, Okun's dual theme feels incredibly prescient as we grapple with the hot-button topic of income inequality. In his foreword, Lawrence H. Summers declares: On what one might think of as questions of "economic philosophy," I doubt that Okun has been improved on in the subsequent interval. His discussion of how societies rely on rights as well as markets should be required reading for all young economists who are enamored with market solutions to all problems. With a new foreword by Lawrence H. Summers