2015

What Matters for Growth in Europe? Institutions versus Policies, Quality versus Instability

Reprint No. 2015:9

Author(s): Niclas Berggren, Andreas Bergh and Christian BjørnskovYear: 2015 Title: Journal of Economic Policy Reform Volume (No.): 18 (1) Pages: 69–88
Online article (restrictions may apply)


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.


Reference:
Berggren, Niclas, Andreas Bergh and Christian Bjørnskov (2015), "What Matters for Growth in Europe? Institutions versus Policies, Quality versus Instability". Journal of Economic Policy Reform 18(1), 69–88.

Niclas Berggren

Contact

Ph: +46 8 665 4520
niclas.berggren@ifn.se

Andreas Bergh

Contact

Mob: 070 779 0734
andreas.bergh@ifn.se

Christian Bjørnskov

Contact

Ph: +45 87 16 48 19
Mob: +45 20 12 03 84
chbj@econ.au.dk

Interdisciplinary European Studies

The European Union in a Changing World Order

Pages-from-2019-Oxelheim-m.gif

This book explores how the European Union responds to the ongoing challenges to the liberal international order. These challenges arise both within the EU itself and beyond its borders, and put into question the values of free trade and liberal democracy. 

About the book

Events

Seminars organized by IFN

 

To present ongoing research informal brown-bag seminars are held on Mondays at 11:30 am. This is an opportunity for IFN researchers to test ideas and results.

Academically oriented seminars are most of the time held on Wednesdays at 10 am. At these events researchers from IFN and other institutions present their research.

In addition, IFN organizes seminars open to the public. Topics for these are derived from the IFN research.

Research Institute of Industrial Economics, Grevgatan 34 - 2 fl, Box 55665, SE-102 15 Stockholm, Sweden | Phone: +46-(0)8-665 45 00 | info@ifn.se