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

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
Table Of 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
Literary Form
non fiction
Description based upon print version of record
Physical Description
1 online resource (36 p.)
Specific Material Designation
Form Of Item

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