02309cas a2200265 a 4500 AALejournalIMF016696 230101c9999 xx r poo 0 0eng d 5.00 USD 9781513589923 1018-5941 BD-DhAAL BD-DhAAL Bordon, Anna. When Do Structural Reforms Work? : On the Role of the Business Cycle and Macroeconomic Policies / Anna Bordon, Christian Ebeke, Kazuko Shirono. Washington, D.C. : International Monetary Fund, 2016. 1 online resource (28 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students Structural reforms are expected to lift growth and employment, but their effects are surprisingly difficult to pin down empirically. One reason is their potential endogeneity to the economic environment in which they are conducted. For example, the impact of a reform implemented shortly before a cyclical upswing is difficult to distinguish from the recovery itself. Similarly, macroeconomic policies conducted along a structural reform could affect the estimated impact. Exploring various options, this paper develops robust estimates of the impact of labor and product market reforms by using local projection techniques while controlling for endogeneity of reforms and other biases. The results suggest that labor and product market reforms have a lagged but positive impact on employment creation, and the positive effect remains even after controlling for the endogeneity of the decision to reform. Supportive macroeconomic policies are found to increase the effect of labor and product market reforms, consistent with the view that some structural reforms are best initiated in conjunction with supportive fiscal or monetary policy. Mode of access: Internet Ebeke, Christian. Shirono, Kazuko. IMF Working Papers; Working Paper ; No. 2016/062 Full text available on IMF http://elibrary.imf.org/view/journals/001/2016/062/001.2016.issue-062-en.xml IMF e-Library