Capros P., P. Karadeloglou and G.N. Mentzas (1990) "The Impact of Structural Features on Macroeconomic Adjustment: An Empirical CGE Modelling Approach"
Paper presented at the International Symposium on Economic Modelling, organized by the International Series on Economic Modelling, Chapman and Hall, 23-25 July , University of Urbino, Italy.
Macroeconomic adjustment programmes, such as the unification process in the European Community or stabilization plans in semi-industrialized economies, are accompanied with micro-oriented reform policies, which are judged necessary to maximize economy's performance. Such reform policies affect mainly structural features of markets (e.g. Liberalization of markets by increasing competition or flexibility in labour market by eliminating indexation patterns etc.) and often deal with institutional characteristics of financing, monetary and exchange rate policies (e.g. Liberalization of financial markets). Most semi-industrialized economies, including some of the members of the European Community, start on macroeconomic adjustment while being in a rather difficult situation characterized by important public debt and current account deficit, as well as by imperfections and rigidities prevailing in markets. To obtain benefits expected from macroeconomic adjustment programmes, it is necessary to opt for changes in structural features. The evaluation of the likely macroeconomic implications of such structural changes is the aim of the modelling approach presented in the paper.
Paper available on request (hard copy only).
