TY  - JOUR
AU  - Caballero,Ricardo J.
AU  - Hammour,Mohamad L.
TI  - Institutions, Restructuring, and Macroeconomic Performance
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 7720
PY  - 2000
Y2  - May 2000
UR  - http://www.nber.org/papers/w7720
L1  - http://www.nber.org/papers/w7720.pdf
N1  - Author contact info:
Ricardo J. Caballero
MIT
Department of Economics
Room E52-373a
Cambridge, MA 02142-1347
Tel: 617/253-0489
Fax: 617/253-6915
E-Mail: caball@mit.edu

Mohamad Hammour
Delta
Ecole Nornale Superieurel
48 Boulvard Jourdan
75014 Paris
FRANCE
E-Mail: hammour@DELTA.ENS.FR
AB  - A growing body of new research has emphasized the macroeconomic consequences of transactional impediments in factor markets, and their role in the recurrent restructuring requirements of modern economies.   We first review the function institutional arrangements play in facilitating transactions and explore the macroeconomic consequences of poor institutions.  As an application, we discuss the lessons that can be learnt from observed changes in the nature of unemployment in Europe.  We then analyze the effect the institutional environment can have on macroeconomic restructuring.  In light of this framework we revisit the question of the relationship between recessions and restructuring activity, and review the recent evidence of reduced restructuring following recessions.  We also discuss corroborating evidence from  merger waves' in the restructuring of corporate assets.
ER  -