![Paolo Liberati Paolo Liberati](/typo3conf/ext/zew_personaltool/Resources/Public/Img/placeholder.jpg)
Paolo Liberati // Università degli Studi di Roma 3
A body of influential research has argued that there may be a positive relationship between openness and government size, motivated by the need to compensate the additional risk that national economies bear when facing increasing exposure to foreign trade (the compensation hypothesis). On the other hand, it has been suggested that more economic openness may de facto reduce the autonomy of national tax and spending policies through capital mobility (the efficiency hypothesis). This paper provides additional insights on this topic. In particular, it shows that:
Paolo Liberati // Università degli Studi di Roma 3