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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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    File URL: http://www.cepii.fr/PDF_PUB/wp/2008/wp2008-17.pdf
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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. Rand, John & Tarp, Finn, 2002. "Business Cycles in Developing Countries: Are They Different?," World Development, Elsevier, vol. 30(12), pages 2071-2088, December.
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    Cited by:

    1. Sébastien Jean & David Laborde & Will Martin, 2008. "Choosing Sensitive Agricultural Products in Trade Negotiations," Working Papers 2008-18, CEPII research center.
    2. Agáta 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, University of Economics, Prague, vol. 2015(3), pages 300-316.

    More about this item

    Keywords

    Fiscal policy; Governement size; Fiscal volatility; Country size;

    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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