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Strategic Interactions on Structural Reforms Between Integrated Economies: What Lessons for the EU?

Etienne Lehmann and Emmanuelle Taugourdeau
Journal of Economic Integration
Vol. 19, No. 1 (March 2004), pp. 46-52
Stable URL: http://www.jstor.org/stable/23000626
Page Count: 7
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Since scans are not currently available to screen readers, please contact JSTOR User Support for access. We'll provide a PDF copy for your screen reader.
Strategic Interactions on Structural Reforms Between Integrated Economies: What Lessons for the EU?
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Abstract

We show that the domestic output increases with a foreign country's structural reform and decreases with foreign country's fiscal policy. Hence, when governments act non-cooperatively, they implement too low structural reforms and too much fiscal policies.

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