Department of Economics and Business Economics

What matters for growth in Europe? Institutions versus policies, quality versus instability

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What matters for growth in Europe? Institutions versus policies, quality versus instability. / Berggren, Niclas; Bergh, Andreas; Bjørnskov, Christian.

In: Journal of Economic Policy Reform, Vol. 18, No. 1, 2015, p. 69-88.

Research output: Contribution to journal/Conference contribution in journal/Contribution to newspaperJournal articleResearchpeer-review

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Berggren, Niclas ; Bergh, Andreas ; Bjørnskov, Christian. / What matters for growth in Europe? Institutions versus policies, quality versus instability. In: Journal of Economic Policy Reform. 2015 ; Vol. 18, No. 1. pp. 69-88.

Bibtex

@article{778a941eb6464918a7f830d65ed2102f,
title = "What matters for growth in Europe?: Institutions versus policies, quality versus instability",
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.",
keywords = "Growth, Institutions, Policies, Instability, Reforms, Europe, Institutional change",
author = "Niclas Berggren and Andreas Bergh and Christian Bj{\o}rnskov",
note = "Campus adgang til artiklen / Campus access to the article",
year = "2015",
doi = "10.1080/17487870.2014.953159",
language = "English",
volume = "18",
pages = "69--88",
journal = "Journal of Economic Policy Reform",
issn = "1748-7870",
publisher = "Routledge",
number = "1",

}

RIS

TY - JOUR

T1 - What matters for growth in Europe?

T2 - Institutions versus policies, quality versus instability

AU - Berggren, Niclas

AU - Bergh, Andreas

AU - Bjørnskov, Christian

N1 - Campus adgang til artiklen / Campus access to the article

PY - 2015

Y1 - 2015

N2 - 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.

AB - 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.

KW - Growth

KW - Institutions

KW - Policies

KW - Instability

KW - Reforms

KW - Europe

KW - Institutional change

U2 - 10.1080/17487870.2014.953159

DO - 10.1080/17487870.2014.953159

M3 - Journal article

VL - 18

SP - 69

EP - 88

JO - Journal of Economic Policy Reform

JF - Journal of Economic Policy Reform

SN - 1748-7870

IS - 1

ER -