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Government Consumption Volatility and the Size of Nations

Davide Furceri, Sinem Kiliç Çelik and Marcos Poplawski-Ribeiro

FinanzArchiv: Public Finance Analysis, 2016, vol. 72, issue 2, 211-228

Abstract: This paper analyzes the relation between government consumption volatility and country size. Using an unbalanced sample of 160 countries from 1960 to 2010, it finds that smaller countries have more volatile government consumption. Moreover, while this relation is more negative for more volatile economies, there is also evidence that smaller countries have more volatile government consumption even controlling for the level of volatility in the economy.

Keywords: fiscal policy; government consumption volatility; country size; government size (search for similar items in EconPapers)
JEL-codes: E62 H10 (search for similar items in EconPapers)
Date: 2016
References: Add references at CitEc
Citations: View citations in EconPapers (4)

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Working Paper: Government Consumption Volatility and the Size of Nations (2009) Downloads
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DOI: 10.1628/001522108X14660601438148

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