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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
Published by: Center for Economic Integration, Sejong University
Stable URL: http://www.jstor.org/stable/23000626
Page Count: 7
You can always find the topics here!Topics: Economic reform, Government reform, Fiscal policy, Terms of trade, Economic policy, Labor markets, Public expenditures, International economics, Financial economics
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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.
Journal of Economic Integration © 2004 Center for Economic Integration, Sejong University