Assessing the Macroeconomic Impact of Structural Reforms The Case of Italy

Author/Editor:

Lusine Lusinyan ; Dirk V Muir

Publication Date:

January 24, 2013

Electronic Access:

Free Download. Use the free Adobe Acrobat Reader to view this PDF file

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

Wide-ranging structural reforms are underway in Italy, aimed at addressing key bottlenecks in the product and labor markets. Our analysis, based on the IMF‘s Global Integrated Monetary and Fiscal model (GIMF), attempts to quantify the potential gains to the economy from a comprehensive package of structural reforms. We find that these gains can be sizeable. While in most cases, the reforms go in the right direction, their impact would depend on effective and timely implementation. In some areas, especially in the labor market, reforms would benefit from further strengthening. The priorities should be to strengthen competition in the non-tradable sector and make the labor market more efficient and inclusive, supported by growth-friendly fiscal reforms.

Series:

Working Paper No. 2013/022

Subject:

Commodity markets Financial markets Labor Labor market reforms Labor markets Wages

English

Publication Date:

January 24, 2013

ISBN/ISSN:

9781475530865/1018-5941

Stock No:

WPIEA2013022

Pages:

59

Please address any questions about this title to publications@imf.org