期刊名称：Discussion Papers in Economics / Department of Economics, University of York
出版年度：2014
卷号：2014
出版社：University of York
摘要：Employment volatility is larger for young and old workers than for prime aged. At the same time, in economies with high tax rates, the share of total hours supplied by the young/old workers is smaller. These two observations imply a negative correlation between government size (measured by the share of taxes in total output) and aggregate output volatility. This paper assesses in a calibrated heterogenous agent, overlapping generations model the quantitative importance of these two facts to account for the empirical relation between government size and macroeconomic stability. The baseline calibration accounts correctly for the quantitative relation between output volatility and government size observed in the data.
