Government Size and Automatic Stabilizers: International and Intranational Evidence

This paper studies the role of automatic stabilizers using a sample of OECD countries and US states. We find that there is a strong and robust negative correlation between measures of government size and the volatility of output. This correlation is robust to the inclusion of a large set of controls as well as to alternative methods of detrending and estimation. The economic significance of this relationship is larger for the US states.

MoreLess

Year of publication:	1999-10
Authors:	Fatás, Antonio ; Mihov, Ilian
Institutions:	C.E.P.R. Discussion Papers
Subject:	Automatic Stabilizers \| Business Cycles \| Fiscal Policy \| Intranational Economics

More details

Extent:	application/pdf
Series:	CEPR Discussion Papers.
Type of publication:	Book / Working Paper
Notes:	Number 2259
Classification:	E6 - Macroeconomic Policy Formation, Macroeconomic Aspects of Public Finance, Macroeconomic Policy, and General Outlook ; F41 - Open Economy Macroeconomics
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005504602