01862cas a2200265 a 4500 AALejournalIMF005085 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451869828 1018-5941 BD-DhAAL BD-DhAAL Pisani-Ferry, Jean. Government Size and Output Volatility : Should We Forsake Automatic Stabilization? / Jean Pisani-Ferry, Xavier Debrun, Andre Sapir. Washington, D.C. : International Monetary Fund, 2008. 1 online resource (53 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 The paper takes stock of the debate on the positive link between output volatility and the size of government-which reflects automatic stabilizers. After a survey of the literature, we show that the contribution of automatic stabilizers to output stability may have disappeared since the 1990s. However, econometric analysis suggests that the breakdown in the government size-volatility relationship largely reflects temporary developments (better monetary management and financial intermediation). Once these factors are taken into account, the stabilizing role of government size remains important although little extra stability can be gained by expanding public expenditure beyond 40 percent of GDP. Mode of access: Internet Debrun, Xavier. Sapir, Andre. IMF Working Papers; Working Paper ; No. 2008/122 Full text available on IMF http://elibrary.imf.org/view/journals/001/2008/122/001.2008.issue-122-en.xml IMF e-Library