## Government Size and Intersectoral Income Fluctuation: An International Panel Analysis

_IMF Working Papers, April 1, 2007_

## Source details

**Canonical URL:** [Government Size and Intersectoral Income Fluctuation: An International Panel Analysis](https://www.imf.org/en/publications/wp/issues/2016/12/31/government-size-and-intersectoral-income-fluctuation-an-international-panel-analysis-20639)

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## Bibliographic details
- Authors: Daehaeng Kim, Chul-In Lee
- Published: April 1, 2007
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451866575.001

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### Summary and core proposition
- Uses the between-sector variation in income as a new measure of economic uncertainty.
- Proposes simple models and presents supportive empirical evidence for causal relations between economic uncertainty and government size in the open economy setting.

### Key empirical findings
- (1) A larger government reduces economic uncertainty.
- (2) An economy facing higher uncertainty has a larger government.
- (3) The government tends to resort to redistributive policies to reduce the uncertainty.
- (4) Government direct spending is also an effective option for the purpose.
- (5) Cross-sectional measure of economic uncertainty tends to rise when a country becomes more open to international trade.

### Subjects and keywords
- Subject: Expenditure, Income shocks, Labor, Personal income, Terms of trade
- Keywords: government spending, open economy, WP

### Authors and publication
- By Daehaeng Kim, Chul-In Lee
- Publication date: April 1, 2007
- Series: Working Paper No. 2007/093
- Issue: 093
- Volume: 2007
- Pages: 34

### Identifiers and access
- DOI: https://doi.org/10.5089/9781451866575.001
- ISBN: 9781451866575
- ISSN: 1018-5941
- Stock No: WPIEA2007093

*Source: IMF Working Papers — Government Size and Intersectoral Income Fluctuation: An International Panel Analysis*

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_Source: https://www.imf.org/en/publications/wp/issues/2016/12/31/government-size-and-intersectoral-income-fluctuation-an-international-panel-analysis-20639_