Article 2024 · 0 citations

The Role of Structural Reforms on the Price and Financial Stability: Evidence from a Multi-Country PSTR Model

Kaya, Vedat, Yalcinkaya, Omer, Akkas, Erhan

Abstract

This paper investigates the effects of structural reforms on 84 developed and developing countries between 2002 and 2018 through the Panel Smooth Transition Regression model. In doing so, it attempts to determine if structural reforms have an impact on price stability in real sectors and on financial stability in financial sectors. This research shows that structural reforms have a significant impact on price and financial stability, despite the fact that the regimes are shaped by the value of the output gap threshold that varies between countries. Based on these results, structural reforms can help to improve price and financial stability to the extent that they can eliminate supply -demand imbalances, prevent systemic risks, and improve expectations by supporting new monetary policy strategies.

Keywords

Structural Reforms Price Stability Financial Stability MONA-Database Nonlinear Panel Data Analysis PSTR EURO AREA UNIT-ROOT GROWTH INDEX

WoS Categories

Economics

Sustainable Development Goals

Partnerships for the Goals Decent Work and Economic Growth

Citation

Journal: EGE ACADEMIC REVIEW
Year: 2024
Volume: 24
Issue: 2
Pages: 149-164
ISSN: 1303-099X
DOI: 10.21121/eab.1108481
WoS UID: WOS:001239683300002

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