Artikel
The impact of financial openness on the size of utility-enhancing government
In this paper, we employ a portfolio approach based on a two-country world to study the impact of financial openness on the size of government and on other key economic variables, including the consumption-wealth ratio, the growth rate of wealth, and welfare (assuming that public spending is utility enhancing). The model suggests that the size of government, the consumption-wealth ratio, and welfare should be greater in an open economy because of higher productivity and/or less volatility because of risk sharing. The theoretical results for the growth rate depend on differences in productivity and in consumption-wealth ratios. The empirical evidence - based on a sample of 49 countries from 1970 to 2009-broadly supports the main theoretical results of the model.
- Sprache
-
Englisch
- Erschienen in
-
Journal: Economics: The Open-Access, Open-Assessment E-Journal ; ISSN: 1864-6042 ; Volume: 7 ; Year: 2013 ; Issue: 2013-38 ; Pages: 1-56 ; Kiel: Kiel Institute for the World Economy (IfW)
- Klassifikation
-
Wirtschaft
Open Economy Macroeconomics
Economic Growth of Open Economies
- Thema
-
Financial openness
productivity
volatility
consumption-wealth ratio
growth
welfare
size of government
Finanzmarktregulierung
Produktivität
Gesamtwirtschaftlicher Konsum
Welt
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Erauskin, Iñaki
- Ereignis
-
Veröffentlichung
- (wer)
-
Kiel Institute for the World Economy (IfW)
- (wo)
-
Kiel
- (wann)
-
2013
- DOI
-
doi:10.5018/economics-ejournal.ja.2013-38
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:45 MEZ
Datenpartner
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Objekttyp
- Artikel
Beteiligte
- Erauskin, Iñaki
- Kiel Institute for the World Economy (IfW)
Entstanden
- 2013
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