Government Size, Trade Openness, and Output Volatility: A Case of Fully Integrated Economies

Arbeitspapier

Government is often considered the safe sector of an open economy that provides households with insurance against external risk exposure. Among highly integrated economies, however, households should be able to exploit common financial markets to insure themselves. In this paper we examine the relationship between government size, trade openness, and output volatility across fully integrated economies using Japan’s regional income accounting and public finance data. The contributions of the government- and market-based insurances to inter-regional risk sharing are also estimated. The empirical results reveal some unique aspects of the state-market interactions under full economic integration with vertical fiscal imbalance.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: CESifo Working Paper ; No. 5563

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Structure and Scope of Government: General ; State and Local Government; Intergovernmental Relations: General ; Macroeconomic Aspects of International Trade and Finance: General
• Thema: government size ; output volatility ; risk-sharing ; trade openness ; vertical fiscal imbalance

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Fujii, Eiji
• Ereignis: Veröffentlichung
• (wer): Center for Economic Studies and ifo Institute (CESifo)
• (wo): Munich
• (wann): 2015

Weitere Informationen

• Handle: http://hdl.handle.net/10419/123214
• Letzte Aktualisierung: 10.03.2025, 11:42 MEZ