NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Measuring 1992's Medium-Term Dynamic Effects

Richard Baldwin

NBER Working Paper No. 3166*
Issued in November 1989
NBER Program(s):   ITI    IFM

This paper presents an explicit model of the link between the 1992 market

liberalization and the aggregate marginal productivity of EC capital. We show

that the liberalization is likely to lead to a ceteris paribus rise in

capital's marginal product and thereby raise the steady-state capital-labor

ratio. The comparative steady-state impact of 1992 on output is roughly

quantified.

*Published: "On the Measurement od Dynamic Effects of Integration", Empirica, Vol. 20,pp 129-145, 1993.

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