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Government Consumption Volatility and Country Size

Author

Listed:
  • Davide Furceri
  • Marcos Poplawski Ribeiro

Abstract

This 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.

Suggested Citation

  • Davide Furceri & Marcos Poplawski Ribeiro, 2008. "Government Consumption Volatility and Country Size," Working Papers 2008-17, CEPII research center.
    • Handle: RePEc:cii:cepidt:2008-17
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    References listed on IDEAS

    as
    1. Fernández, Raquel & Levy, Gilat, 2008. "Diversity and redistribution," Journal of Public Economics, Elsevier, vol. 92(5-6), pages 925-943, June.
    2. Antonio Fatás & Ilian Mihov, 2013. "Policy Volatility, Institutions, and Economic Growth," The Review of Economics and Statistics, MIT Press, vol. 95(2), pages 362-376, May.
    3. Rand, John & Tarp, Finn, 2002. "Business Cycles in Developing Countries: Are They Different?," World Development, Elsevier, vol. 30(12), pages 2071-2088, December.
    4. Rui Ota & Ms. Stephanie C Medina Cas, 2008. "Big Government, High Debt, and Fiscal Adjustment in Small States," IMF Working Papers 2008/039, International Monetary Fund.
    5. Mr. Paulo A Medas & Mr. Eric Le Borgne, 2007. "Sovereign Wealth Funds in the Pacific Island Countries: Macro-Fiscal Linkages," IMF Working Papers 2007/297, International Monetary Fund.
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    Citations

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    Cited by:

    1. Agata Drobiszová & Zuzana Machová, 2015. "Vliv fiskální politiky na ekonomický růst v zemích OECD [The Impact of Fiscal Policy on Economic Growth in the OECD Countries]," Politická ekonomie, Prague University of Economics and Business, vol. 2015(3), pages 300-316.
    2. Muhsin Ali & Karim Khan, 2020. "Volatility in Discretionary Public Spending and Economic Growth: A Cross Country Analysis," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 59(1), pages 45-68.
    3. Antoine Berthou & Lionel Fontagné, 2008. "The Euro Effects on the Firm and Product-Level Trade Margins: Evidence from France," Working Papers 2008-21, CEPII research center.
    4. Jean, Sébastien & Laborde Debucquet, David & Martin, Will, 2008. "Choosing sensitive agricultural products in trade negotiations," IFPRI discussion papers 788, International Food Policy Research Institute (IFPRI).

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    Keywords

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    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • H10 - Public Economics - - Structure and Scope of Government - - - General

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