Advanced Search
MyIDEAS: Login

Public expenditure and growth volatility: do "globalisation" and institutions matter?

Contents:

Author Info

  • Fabrizio Carmignani

    (United Nations Economic Commission for Africa¤)

  • Emilio Colombo

    ()
    (Department of Economics, University of Milan-Bicocca)

  • Patrizio Tirelli

    ()
    (Department of Economics, University of Milan-Bicocca)

Abstract

We revisit the empirical relationship between output volatility and government expenditure in a model where the two are jointly deter- mined. The key regressors in our model are trade and ¯nancial integra- tion indicators, institutional variables, including central bank indepen- dence, and a measure of de facto exchange rate °exibility. Our ¯ndings consistently signal that government discretion has destabilising e®ects on growth volatility. We con¯rm that government size increases with trade integration, but this has adverse e®ects because public spending is positively related to growth volatility. Institutions that increase policy- makers accountability limit the level of public expenditure and volatility. In this regard, our results support the view that stronger institutions increase policy efficiency.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://dipeco.economia.unimib.it/repec/pdf/mibwpaper116.pdf
File Function: First version, 2007
Download Restriction: no

Bibliographic Info

Paper provided by University of Milano-Bicocca, Department of Economics in its series Working Papers with number 116.

as in new window
Length: 32 pages
Date of creation: 2007
Date of revision: 2007
Handle: RePEc:mib:wpaper:116

Contact details of provider:
Postal: Piazza Ateneo Nuovo, 1 Milano 20126
Phone: +39 02 6448 3089
Fax: +39 02 6448 3085
Email:
Web page: http://dipeco.economia.unimib.it
More information through EDIRC

Related research

Keywords: Output volatility; government expenditure; trade openness; financial openness; central bank independence; political institutions;

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Chinn, Menzie David & Ito, Hiro, 2005. "What Matters for Financial Development? Capital Controls, Institutions, and Interactions," Santa Cruz Center for International Economics, Working Paper Series qt5pv1j341, Center for International Economics, UC Santa Cruz.
  2. Atish R. Ghosh & Anne-Marie Gulde & Holger C. Wolf, 2003. "Exchange Rate Regimes: Choices and Consequences," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262072408.
Full references (including those not matched with items on IDEAS)

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:mib:wpaper:116. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Roberto Reale).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.