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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Автор: Kim, Daehaeng
Інші автори: Lee, Chul-In
Формат: Журнал
Мова:English
Опубліковано: Washington, D.C. : International Monetary Fund, 2007.
Серія:IMF Working Papers; Working Paper ; No. 2007/093
Онлайн доступ:Full text available on IMF
Опис
Резюме: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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Фізичний опис:1 online resource (34 pages)
Формат:Mode of access: Internet
ISSN:1018-5941
Доступ:Electronic access restricted to authorized BRAC University faculty, staff and students