Government Size and Intersectoral Fluctuation

• 발행기관: 한국재정학회(구 한국재정·공공경제학회)
• 저자명: Daehaeng Kim Chul-In Lee
• 간행물 정보: 『한국재정학회 학술대회 논문집』2006년도 추계학술대회 논문집, 1~43쪽, 전체 43쪽
• 주제분류: 경제경영 > 경제학
• 파일형태: PDF
• 발행일자: 2006.10.30

영문 초록

The association between economic uncertainty and government size has recently become a central policy interest, especially in the open economy context. Using the between-sector variation in income as a new measure of uncertainty, this paper proposes simple models describing the interaction between economic uncertainty and government size in the open economy setting, and provides supportive empirical evidence. Our empirical results are as follows: (i) a greater government reduces sectoral income volatility, and, at the same time, (ii) an economy facing higher intersectoral fluctuation has a larger government. However, (iii) the government tends to resort to redistributive policies rather than government spending to reduce the uncertainty, while (iv) government spending is almost as effective as government subsidies and transfers. The results based on the open economy include: (v) for a given external sector-specific shock, intersectoral fluctuation tends to rise when a country becomes more open to international trade.

목차

Abstract

I. Introduction

II. Theoretical Framework

III. Empirical Analysis

IV. Summary and Conclusion

References

APPENDIX 1

APPENDIX 2

키워드

government size economic uncertainty openness to trade intersectoral fluctuation