The impact of financial openness on the size of utility-enhancing government

Artikel

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.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• 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 und Themen

• 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

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Erauskin, Iñaki
• Ereignis: Veröffentlichung
• (wer): Kiel Institute for the World Economy (IfW)
• (wo): Kiel
• (wann): 2013

Weitere Informationen

• DOI: doi:10.5018/economics-ejournal.ja.2013-38
• Handle: http://hdl.handle.net/10419/85340
• Letzte Aktualisierung: 10.03.2025, 11:45 MEZ