What matters for growth in Europe? Institutions versus policies, quality versus instability
(2015) In Journal of Economic Policy Reform 18(1). p.69-88- Abstract
- We study how the quality and instability of institutions and policies affect economic growth in 35 European countries. While stability entails valuable predictability, instability can reflect reforms that offer positive long-run consequences. We construct measures of quality and instability for a panel of countries for 1984-2009. Results suggest that the quality of policy is growth-promoting. Notably, this positive effect becomes larger the more unstable policies are. The findings suggest that for European countries, the benefits of policy flexibility - due to experimentation and learning or making rent seeking more difficult - dominate the costs of reduced predictability.
Please use this url to cite or link to this publication:
https://lup.lub.lu.se/record/5194575
- author
- Berggren, Niclas ; Bergh, Andreas LU and Bjornskov, Christian
- organization
- publishing date
- 2015
- type
- Contribution to journal
- publication status
- published
- subject
- keywords
- policies, Europe, reforms, institutional change, institutions, growth, instability, O11, B52, O43, O17, D80
- in
- Journal of Economic Policy Reform
- volume
- 18
- issue
- 1
- pages
- 69 - 88
- publisher
- Taylor & Francis
- external identifiers
-
- wos:000349519700005
- scopus:84924054144
- ISSN
- 1748-7889
- DOI
- 10.1080/17487870.2014.953159
- language
- English
- LU publication?
- yes
- id
- 813e1954-132c-4b08-92c2-ab63bab9a325 (old id 5194575)
- date added to LUP
- 2016-04-01 10:30:35
- date last changed
- 2022-02-02 18:30:19
@article{813e1954-132c-4b08-92c2-ab63bab9a325, abstract = {{We study how the quality and instability of institutions and policies affect economic growth in 35 European countries. While stability entails valuable predictability, instability can reflect reforms that offer positive long-run consequences. We construct measures of quality and instability for a panel of countries for 1984-2009. Results suggest that the quality of policy is growth-promoting. Notably, this positive effect becomes larger the more unstable policies are. The findings suggest that for European countries, the benefits of policy flexibility - due to experimentation and learning or making rent seeking more difficult - dominate the costs of reduced predictability.}}, author = {{Berggren, Niclas and Bergh, Andreas and Bjornskov, Christian}}, issn = {{1748-7889}}, keywords = {{policies; Europe; reforms; institutional change; institutions; growth; instability; O11; B52; O43; O17; D80}}, language = {{eng}}, number = {{1}}, pages = {{69--88}}, publisher = {{Taylor & Francis}}, series = {{Journal of Economic Policy Reform}}, title = {{What matters for growth in Europe? Institutions versus policies, quality versus instability}}, url = {{http://dx.doi.org/10.1080/17487870.2014.953159}}, doi = {{10.1080/17487870.2014.953159}}, volume = {{18}}, year = {{2015}}, }