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Government Consumption Volatility and Country Size

  • Davide Furceri
  • Marcos Poplawski Ribeiro

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.

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File URL: http://www.cepii.fr/PDF_PUB/wp/2008/wp2008-17.pdf
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Paper provided by CEPII research center in its series Working Papers with number 2008-17.

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Date of creation: Sep 2008
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Handle: RePEc:cii:cepidt:2008-17
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  1. Rand, John & Tarp, Finn, 2002. "Business Cycles in Developing Countries: Are They Different?," World Development, Elsevier, vol. 30(12), pages 2071-2088, December.
  2. Raquel Fernández & Gilat Levy, 2005. "Diversity and redistribution," LSE Research Online Documents on Economics 544, London School of Economics and Political Science, LSE Library.
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