NOTHING VENTURED, NOTHING GAINED:
THE LONG-RUN FISCAL REWARD OF STRUCTURAL REFORM
Introduction...................................................................................................................................................44
Linking reforms and the budget ....................................................................................................................45
The UK budget: a role model? ...............................................................................................................45
Quantifying the cost of inaction.............................................................................................................47
Quantifying the impact of regulatory reform.........................................................................................51
“Big bangs” and gradualism: the experiences of New Zealand and Australia.......................................51
Structural reform in an empirical expenditure rule .......................................................................................53
Linking structural reform and fiscal performance: what can a macro-model tell?........................................57
Effects of coordinated reform in monetary union..................................................................................57
Structural reform in a single country in monetary union .......................................................................61
Effects of a decline in structural unemployment with a more active fiscal policy.................................65
Some policy implications ..............................................................................................................................65
Bibliography..................................................................................................................................................68
43