The short- and medium-term effects of structural reforms: a reassessment

2026

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1) This paper reassesses the short- and medium-term macroeconomic effects of various structural reforms, providing crucial insights for policymakers aiming to design and implement effective reforms.
2) * Analyzes the macroeconomic impacts of a broad set of structural policy changes, including corporate tax measures, marginal tax wedges, active labor market policies, employment protection legislation, rental market regulations, rail infrastructure investment, and basic research expenditure.
* Employs local projection methods within a difference-in-differences framework to estimate horizon-specific impulse responses, ensuring robustness through various sensitivity checks.
* Finds that most reforms deliver measurable medium-run gains, with some also showing short-run improvements, offering evidence to inform reform prioritization and sequencing.
3) Structural reforms, macroeconomic effects, local projections, difference-in-differences, policy impact

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