OECD Economics Department Working Papers
Working papers from the Economics Department of the OECD that cover the full range of the Department’s work including the economic situation, policy analysis and projections; fiscal policy, public expenditure and taxation; and structural issues including ageing, growth and productivity, migration, environment, human capital, housing, trade and investment, labour markets, regulatory reform, competition, health, and other issues.
The views expressed in these papers are those of the author(s) and do not necessarily reflect those of the OECD or of the governments of its member countries.
- Forthcoming titles
- ISSN: 18151973 (online)
- https://doi.org/10.1787/18151973
Product Market Competition and Economic Performance in the United States
Regulatory reform efforts in a broad range of industries have resulted in increased importance of competitive
forces as a means to allocate resources and improve economic efficiency. A number of indicators suggest that
such forces have been stronger in the United States than in most other OECD countries for some time. This has
contributed to sizeable productivity gains and good economic performance over the past decade or so.
Nonetheless, despite the generally pro-competitive thrust of policies, a number of challenges remain. Although
there are few sectors of the economy from which competition policy and law are completely excluded, given the
high risk of sanctions and damages for violation, many anomalous exemptions and special regimes have found
their way into US legislation. Contrary to other OECD countries, government related firms are exempted from
competition enforcement. Intellectual property rights create special challenges for competition policy and some
problems have followed their strengthening over the past two decades, such as the soaring cost of patent
litigation. The generally favourable experience with deregulation created pressures for liberalisation in network
industries, where the United States has rather been a laggard, at least in the electricity sector. Reforms in the
1990s have entailed some positive results but also some setbacks, reflecting both the difficulties in ensuring
competition in such industries and policy mistakes.
Keywords: public procurement, United States, regulatory reforms, intellectual property rights, network industries, tort reform, competition law, productivity and growth, product market competition
JEL:
L98: Industrial Organization / Industry Studies: Transportation and Utilities / Industry Studies: Utilities and Transportation: Government Policy;
O51: Economic Development, Innovation, Technological Change, and Growth / Economywide Country Studies / Economywide Country Studies: U.S.; Canada;
O34: Economic Development, Innovation, Technological Change, and Growth / Innovation; Research and Development; Technological Change; Intellectual Property Rights / Intellectual Property and Intellectual Capital;
O31: Economic Development, Innovation, Technological Change, and Growth / Innovation; Research and Development; Technological Change; Intellectual Property Rights / Innovation and Invention: Processes and Incentives;
L94: Industrial Organization / Industry Studies: Transportation and Utilities / Electric Utilities;
K23: Law and Economics / Regulation and Business Law / Regulated Industries and Administrative Law;
O4: Economic Development, Innovation, Technological Change, and Growth / Economic Growth and Aggregate Productivity;
O38: Economic Development, Innovation, Technological Change, and Growth / Innovation; Research and Development; Technological Change; Intellectual Property Rights / Technological Change: Government Policy;
L96: Industrial Organization / Industry Studies: Transportation and Utilities / Telecommunications;
L5: Industrial Organization / Regulation and Industrial Policy;
L4: Industrial Organization / Antitrust Issues and Policies;
K13: Law and Economics / Basic Areas of Law / Tort Law and Product Liability; Forensic Economics;
H57: Public Economics / National Government Expenditures and Related Policies / National Government Expenditures and Related Policies: Procurement;
K21: Law and Economics / Regulation and Business Law / Antitrust Law
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