TY  - JOUR
TI  - The Impact of Government Size on Output Volatility: Evidence from World Economies
AB  - One of the most important goals of policy-makers is to achievemacroeconomic stability, which could significantly be affected by output volatility. In aneffort to provide insights with regard to macroeconomic stability, this study aims tomodel the volatility of output by using univariate GARCH models and to examine theimpact of government size on output volatility by using extensive data set from eightdifferent classifications of world economies for the period between 1960 and 2017. Thestudy also employs the Granger Causality Analysis to determine the direction of thisrelationship. The results provide strong evidence for a negative relation betweengovernment size and output volatility. Output volatility is largely dependent on its ownshocks and negatively influenced by outside shock as government size. Moreover,confirming Keynesian Hypothesis, the results show that there is mostly one-waycausality from government size to output volatility. The results are robust in terms ofdifferent classifications of world economies, different measurements of outputvolatility, different methodologies and controlling for the effect of different sets ofexogenous variables.
AU  - SEVİL, GÜVEN
AU  - ÖZ YALAMAN, GAMZE
AU  - SEVİNÇ, DENİZ
DO  - 10.20409/berj.2019.199
PY  - 2019
JO  - Business and Economics Research Journal
VL  - 10
IS  - 4
SN  - 2619-9491
SP  - 761
EP  - 776
DB  - TRDizin
UR  - http://search/yayin/detay/319098
ER  -