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Government Size and Output Volatility: Should we foresake automatic Stabilisation? Bruegel Working Papers, 2008/01, April 2008

Debrun, Xavier and Pisani-Ferry, Jean and Sapir, Andre. (2008) Government Size and Output Volatility: Should we foresake automatic Stabilisation? Bruegel Working Papers, 2008/01, April 2008. [Working Paper]

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    Abstract

    In this working paper, Xavier Debrun, Jean Pisani-Ferry and André Sapir explore the relationships between government size and output volatility. Whilst government size contributes to macroeconomic stabilisation, the slow down in output volatility of the 1980s and 90s was due more to a combination of monetary policy improvements and financial developments. That this decline was especially pronounced in small-government countries showed a reduction in the variance of primary income was more important than government transfers and that other channels of stabilisation were available for small-government countries. For most countries in the euro area, the impact of a marginal change in the size of government is bound to be small.

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    Item Type: Working Paper
    Uncontrolled Keywords: Econometric analysis; stabilisation; stabilization.
    Subjects for non-EU documents: EU policies and themes > Policies & related activities > economic and financial affairs > monetary policy
    Subjects for EU documents: UNSPECIFIED
    EU Series: UNSPECIFIED
    ["eprint_fieldname_eusries" not defined]: UNSPECIFIED
    EU Annual Reports: UNSPECIFIED
    Series: Series > Bruegel (Brussels) > Working Papers
    Depositing User: Phil Wilkin
    Official EU Document: No
    Language: English
    Date Deposited: 03 Jul 2008
    Page Range: p. 73
    Last Modified: 15 Feb 2011 17:53
    URI: http://aei.pitt.edu/id/eprint/8403

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