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Jahrbücher für Nationalökonomie und Statistik

Journal of Economics and Statistics

Editor-in-Chief: Winker, Peter

Ed. by Büttner, Thiess / Riphahn, Regina / Smolny, Werner / Wagner, Joachim

IMPACT FACTOR 2018: 0.200
5-year IMPACT FACTOR: 0.309

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Volume 239, Issue 5-6


Helping with the Homework: Support Mechanisms for Uncertain Reforms in a Monetary Union

Carsten Hefeker
Published Online: 2019-08-24 | DOI: https://doi.org/10.1515/jbnst-2018-0075


A lack of structural reforms is often considered as a major problem in many member countries of EMU. This lack is arguably partly due to uncertainty about outcomes and a disregard for how policies spill over to other countries. Monetary union can reinforce this underprovision of structural reforms. Because centralization of structural policies is politically not feasible, I discuss subsidies for reforms and insurance against negative outcomes as alternative mechanisms that increase reform efforts. The paper derives the optimal use of those mechanisms and discusses their implementability.

Keywords: Monetary union; policy reforms; spillovers; uncertainty; subsidy; insurance

JEL Classification: F33; F42; F45; H77


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About the article

Received: 2018-09-27

Revised: 2018-12-21

Accepted: 2019-02-03

Published Online: 2019-08-24

Published in Print: 2019-09-25

Citation Information: Jahrbücher für Nationalökonomie und Statistik, Volume 239, Issue 5-6, Pages 983–1004, ISSN (Online) 2366-049X, ISSN (Print) 0021-4027, DOI: https://doi.org/10.1515/jbnst-2018-0075.

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