Profit Dynamics and Product Market Regulations in the OECD

December 22, 2015

This report examines how product market regulations influence profit persistence, which provides information about how competitive countries actually are. The main findings are that Greece, Spain, the Czech Republic and Italy have the least competitive economies (i.e., most-persistent profits) in the OECD, whereas Germany, Norway, Japan and Sweden are among the most competitive economies (i.e., least-perĀ­sistent profits). The findings have implications for regulatory economics and suggest that economies could improve their competitiveness through regulatory reform.