Government Consumption Volatility and Country Size
AbstractThis paper provides empirical evidence showing that smaller countries tend to have more volatile government consumption for a sample of 160 countries from 1960 to 2000. The analysis also shows that country size is negatively related to the discretionary part of government consumption and to the volatilities of most of government consumption items. The results are robust to different time and country samples, different econometric techniques and to several sets of control variables.
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Bibliographic InfoPaper provided by CEPII research center in its series Working Papers with number 2008-17.
Date of creation: Sep 2008
Date of revision:
Fiscal policy; Governement size; Fiscal volatility; Country size;
Find related papers by JEL classification:
- E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy
- H10 - Public Economics - - Structure and Scope of Government - - - General
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