IDEAS home Printed from https://ideas.repec.org/p/stm/dpaper/12.html
   My bibliography  Save this paper

OECD contribution to the evaluation of the ESM financial assistance programme for Greece

Author

Listed:
  • Manuel Bétin

    (OECD)

  • Tim Bulman

    (OECD)

  • Thomas Chalaux

    (OECD)

  • Boris Cournède

    (OECD)

  • Alain de Serres

    (OECD)

  • Claude Giorno

    (OECD)

  • Yvan Guillemette

    (OECD)

Abstract

This background study assesses the impact of budgetary and market reforms from the start of the Greek financial assistance programmes, identifying key driving factors and drawing lessons from the Greek adjustment programmes. It assesses the economic and social impact of structural reforms based on four empirical tools. The paper analyses the impact of Greek reforms in labour and product markets, as well as those aimed at improving the effectiveness and quality of public services and administration. Product market reforms proved slow and piecemeal compared to the labour market restructuring, which constrained the much-needed competitiveness improvements and domestic demand, while contributing to rising poverty. A large drop in public investment had a negative effect on medium-term growth. The retrospective analysis is complemented by some prospective scenarios, with a focus on supply side conditions in the economy.

Suggested Citation

  • Manuel Bétin & Tim Bulman & Thomas Chalaux & Boris Cournède & Alain de Serres & Claude Giorno & Yvan Guillemette, 2020. "OECD contribution to the evaluation of the ESM financial assistance programme for Greece," Discussion Papers 12, European Stability Mechanism, revised 27 Oct 2021.
    • Handle: RePEc:stm:dpaper:12
    as

    Download full text from publisher

    File URL: https://www.esm.europa.eu/sites/default/files/document/dp12.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Maria Chiara Cavalleri & Yvan Guillemette, 2017. "A revised approach to trend employment projections in long-term scenarios," OECD Economics Department Working Papers 1384, OECD Publishing.
    2. Balázs Égert & Peter Gal, 2017. "The quantification of structural reforms in OECD countries: A new framework," OECD Journal: Economic Studies, OECD Publishing, vol. 2016(1), pages 91-108.
    3. Balázs Égert, 2016. "Regulation, Institutions, and Productivity: New Macroeconomic Evidence from OECD Countries," American Economic Review, American Economic Association, vol. 106(5), pages 109-113, May.
    4. Orsetta Causa & Mikkel Hermansen, 2017. "Income redistribution through taxes and transfers across OECD countries," OECD Economics Department Working Papers 1453, OECD Publishing.
    5. Orsetta Causa & Anna Vindics & Oguzhan Akgun, 2018. "An empirical investigation on the drivers of income redistribution across OECD countries," OECD Economics Department Working Papers 1488, OECD Publishing.
    6. Orsetta Causa & Mikkel Hermansen & Nicolas Ruiz, 2016. "The Distributional Impact of Structural Reforms," OECD Economics Department Working Papers 1342, OECD Publishing.
    7. Yvan Guillemette & Alexandre Kopoin & David Turner & Andrea De Mauro, 2017. "A revised approach to productivity convergence in long-term scenarios," OECD Economics Department Working Papers 1385, OECD Publishing.
    8. Jens Matthias Arnold, 2008. "Do Tax Structures Affect Aggregate Economic Growth?: Empirical Evidence from a Panel of OECD Countries," OECD Economics Department Working Papers 643, OECD Publishing.
    9. Peter Gal & Adam Theising, 2015. "The macroeconomic impact of structural policies on labour market outcomes in OECD countries: A reassessment," OECD Economics Department Working Papers 1271, OECD Publishing.
    10. Jens Matthias Arnold & Bert Brys & Christopher Heady & Åsa Johansson & Cyrille Schwellnus & Laura Vartia, 2011. "Tax Policy for Economic Recovery and Growth," Economic Journal, Royal Economic Society, vol. 121(550), pages 59-80, February.
    11. Paul Mylonas & Christine de la Maisonneuve, 1999. "The Problems and Prospects Faced by Pay-As-You-Go Pension Systems: A Case Study of Greece," OECD Economics Department Working Papers 215, OECD Publishing.
    12. Yvan Guillemette & David Turner, 2018. "The Long View: Scenarios for the World Economy to 2060," OECD Economic Policy Papers 22, OECD Publishing.
    13. Boris Cournède & Jean-Marc Fournier & Peter Hoeller, 2018. "Public finance structure and inclusive growth," OECD Economic Policy Papers 25, OECD Publishing.
    14. Yvan Guillemette & Andrea De Mauro & David Turner, 2018. "Saving, investment, capital stock and current account projections in long-term scenarios," OECD Economics Department Working Papers 1461, OECD Publishing.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Yvan Guillemette & David Turner, 2018. "The Long View: Scenarios for the World Economy to 2060," OECD Economic Policy Papers 22, OECD Publishing.
    2. Boris Cournède & Jean-Marc Fournier & Peter Hoeller, 2018. "Public finance structure and inclusive growth," OECD Economic Policy Papers 25, OECD Publishing.
    3. Orsetta Causa & Anna Vindics & Oguzhan Akgun, 2018. "An empirical investigation on the drivers of income redistribution across OECD countries," OECD Economics Department Working Papers 1488, OECD Publishing.
    4. Balázs Égert, 2017. "The quantification of structural reforms: Extending the framework to emerging market economies," OECD Economics Department Working Papers 1442, OECD Publishing.
    5. Christine Lewis & Patrice Ollivaud, 2020. "Policies for Switzerland’s ageing society," OECD Economics Department Working Papers 1600, OECD Publishing.
    6. Jing Xing, 2011. "Does tax structure affect economic growth? Empirical evidence from OECD countries," Working Papers 1120, Oxford University Centre for Business Taxation.
    7. Francesca Gastaldi & Paolo Liberati & Elena Pisano & Simone Tedeschi, 2014. "Progressivity-Improving VAT Reforms in Italy," Working papers 6, Società Italiana di Economia Pubblica.
    8. Franzini, Maurizio & Raitano, Michele, 2019. "Earnings inequality and workers’ skills in Italy," Structural Change and Economic Dynamics, Elsevier, vol. 51(C), pages 215-224.
    9. Balazs Egert, 2022. "Public policy reforms and their impact on productivity, investment and employment: new evidence from OECD and non-OECD countries," Public Sector Economics, Institute of Public Finance, vol. 46(2), pages 179-205.
    10. Alfò, Marco & Carbonari, Lorenzo & Trovato, Giovanni, 2023. "On the effects of taxation on growth: an empirical assessment," Macroeconomic Dynamics, Cambridge University Press, vol. 27(5), pages 1289-1318, July.
    11. Orsetta Causa & Alain de Serres & Nicolas Ruiz, 2015. "Can pro-growth policies lift all boats?: An analysis based on household disposable income," OECD Journal: Economic Studies, OECD Publishing, vol. 2015(1), pages 227-268.
    12. Lastauskas, Povilas & Stakėnas, Julius, 2020. "Labor market reforms and the monetary policy environment," European Economic Review, Elsevier, vol. 128(C).
    13. Norman Gemmell & Richard Kneller & Ismael Sanz, 2014. "The growth effects of tax rates in the OECD," Canadian Journal of Economics, Canadian Economics Association, vol. 47(4), pages 1217-1255, November.
    14. Angela Köppl & Margit Schratzenstaller-Altzinger, 2015. "The Austrian Tax System – Perspectives for Reform," WIFO Bulletin, WIFO, vol. 20(6), pages 72-79, April.
    15. Mr. Younes Zouhar & Jon Jellema & Nora Lustig & Mohamed Trabelsi, 2021. "Public Expenditure and Inclusive Growth - A Survey," IMF Working Papers 2021/083, International Monetary Fund.
    16. Nazila Alinaghi & W. Robert Reed, 2021. "Taxes and Economic Growth in OECD Countries: A Meta-analysis," Public Finance Review, , vol. 49(1), pages 3-40, January.
    17. Balázs Égert & Peter Gal, 2017. "The quantification of structural reforms in OECD countries: A new framework," OECD Journal: Economic Studies, OECD Publishing, vol. 2016(1), pages 91-108.
    18. Orsetta Causa & Mikkel Hermansen & Nicolas Ruiz, 2016. "The Distributional Impact of Structural Reforms," OECD Economics Department Working Papers 1342, OECD Publishing.
    19. Robert Hagemann, 2018. "Tax Policies for Inclusive Growth: Prescription versus Practice," OECD Economic Policy Papers 24, OECD Publishing.
    20. Adam, Antonis & Kammas, Pantelis & Lapatinas, Athanasios, 2015. "Income inequality and the tax structure: Evidence from developed and developing countries," Journal of Comparative Economics, Elsevier, vol. 43(1), pages 138-154.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:stm:dpaper:12. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Karol SISKIND (email available below). General contact details of provider: https://edirc.repec.org/data/efseulu.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.