Government Size and Output Volatility : Should We Forsake Automatic Stabilization?

Should We Forsake Automatic Stabilization?

Government Size and Output Volatility : Should We Forsake Automatic Stabilization?
The paper takes stock of the debate on the positive link between output volatility and the size of government-which reflects automatic stabilizers. After a survey of the literature, we show that the contribution of automatic stabilizers to output stability may have disappeared since the 1990s. However, econometric analysis suggests that the... READ MORE...

Publication date: May 2008
ISBN 9781451869828
$18.00

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