Government Size and Intersectoral Income Fluctuation : An International Panel Analysis /

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 larg...

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Detalhes bibliográficos
Autor principal: Kim, Daehaeng
Outros Autores: Lee, Chul-In
Formato: Periódico
Idioma:English
Publicado em: Washington, D.C. : International Monetary Fund, 2007.
coleção:IMF Working Papers; Working Paper ; No. 2007/093
Acesso em linha:Full text available on IMF
Descrição
Resumo: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.
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Descrição Física:1 online resource (34 pages)
Formato:Mode of access: Internet
ISSN:1018-5941
Acesso:Electronic access restricted to authorized BRAC University faculty, staff and students