Government Size and Intersectoral Income Fluctuation: An International Panel Analysis
| Autor: | Chul-In Lee, Daehaeng Kim |
|---|---|
| Rok vydání: | 2007 |
| Předmět: |
Commercial policy
Macroeconomics Government Panel analysis Economic models Economic stabilization Government expenditures Trade policy Economic Uncertainty Government Size Openness to Trade Stabilization Intersectoral Income Fluctuation equation terms of trade external shocks open economy equations Structure And Scope Of Government Fiscal Policies And Behavior Of Economic Agents National Government Expenditures And Related Policies Economic uncertainty Economics General Earth and Planetary Sciences Economic model Open economy Terms of trade Empirical evidence General Environmental Science |
| Zdroj: | IMF Working Papers. :1 |
| ISSN: | 1018-5941 |
| DOI: | 10.5089/9781451866575.001 |
| Popis: | Using the between-sector variation in income as a new measure of economic uncertainty, this paper proposes simple models and supportive empirical evidence for the causal relations between economic uncertainty and government size in the open economy setting. Key empirical findings include: (1) a larger government reduces economic uncertainty, and, at the same time, (2) an economy facing higher uncertainty has a larger government. However, (3) the government tends to resort to redistributive policies to reduce the uncertainty, while (4) government direct spending is also an effective option for the purpose. The study also finds that (5) cross-sectional measure of economic uncertainty tends to rise when a country becomes more open to international trade. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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