Government Size, Trade Openness, and Intersectoral Income Fluctuation: An International Panel Analysis

• 발행기관: 한국재정학회(구 한국재정·공공경제학회)
• 저자명: Daehaeng Kim Chul-In Lee
• 간행물 정보: 『한국재정학회 학술대회 논문집』2018년도 추계학술대회 논문집, 1~36쪽, 전체 36쪽
• 주제분류: 경제경영 > 경제학
• 파일형태: PDF
• 발행일자: 2018.10.30

영문 초록

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 relationship between economic uncertainty and government size in the open economy setting. Main empirical findings include: (i) a larger government reduces economic uncertainty, and, at the same time, (ii) an economy facing higher uncertainty has a larger government. However, (iii) the government tends to resort to redistributive policies to reduce the uncertainty, while (iv) government direct spending is also an effective option for the purpose. The study also finds that (v) the new cross-sectional measure of economic uncertainty tends to rise when a country becomes more open to international trade. Our results suggest that there is some tradeoff between economic stability and the public sector efficiency (or fiscal soundness) represented by a small government.

목차

I. I NTRODUCTION

II. T HEORETICAL F RAMEWORK

III. E MPIRICAL M ODELS AND D ATA

키워드

Economic Uncertainty Government Size Openness to Trade Stabilization Intersectoral Income Fluctuation