Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/123214
Authors: 
Fujii, Eiji
Year of Publication: 
2015
Series/Report no.: 
CESifo Working Paper 5563
Abstract: 
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.
Subjects: 
government size
output volatility
risk-sharing
trade openness
vertical fiscal imbalance
JEL: 
H10
H70
F40
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.