01867cas a2200253 a 4500 AALejournalIMF004876 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451866575 1018-5941 BD-DhAAL BD-DhAAL Kim, Daehaeng. Government Size and Intersectoral Income Fluctuation : An International Panel Analysis / Daehaeng Kim, Chul-In Lee. Washington, D.C. : International Monetary Fund, 2007. 1 online resource (34 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students 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. Mode of access: Internet Lee, Chul-In. IMF Working Papers; Working Paper ; No. 2007/093 Full text available on IMF http://elibrary.imf.org/view/journals/001/2007/093/001.2007.issue-093-en.xml IMF e-Library