Government Size and Intersectoral Income Fluctuation : An International Panel Analysis / Daehaeng Kim, Chul-In Lee.

Format:

Book

Government document

Author/Creator:

Kim, Daehaeng.

Contributor:

Lee, Chul-In.

Series:

IMF Working Papers; Working Paper ; No. 2007/093

IMF Working Papers

Language:

English

Subjects (All):

Income distribution.

Uncertainty.

Physical Description:

1 online resource (36 p.)

Place of Publication:

Washington, D.C. : International Monetary Fund, 2007.

Language Note:

English

Summary:

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.

Contents:

Contents; I. Introduction; II. Theoretical Framework; A. Measurement of Economic Uncertainty; Figures; 1. IIF and Varience of GDP Growth Rate: 1981-1998; B. Simple Keynesian Model; C. Openness to Trade and Intersectoral Fluctuation; III. Empirical Models and Data; A. Specification and Identification of Empirical Models; B. Data and the Sample; Tables; 1. Definition of Industriesg; IV. Estimation Results; A. Patterns of Estimates; 2. Summary Statistics of Key Variables; 3. Estimation Results: Government Expenditure (EXP); B. Further Results

4. Estimation Results: Expenditure Less Subsidies and Transfers (NSTEXP)5. Estimation Results: Expenditure on Subsidies and Transfers (STEXP); 6. Government Size Effect on Uncertainty: Equation (7); 7. Uncertainty Effect on Government Size: Equation (8); V. Summary and Conclusions; Appendixes; I. Proof of Results; II. The Equilibrium of the Open Economy Model; References

Notes:

"April 2007."

Includes bibliographical references.

Description based on print version record.

ISBN:

9786613827333

9781462340699

1462340695

9781452724898

145272489X

9781283514880

1283514885

9781451911107

1451911106