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Cover of: Government Consumption Volatility and the Size of Nations
Davide Furceri, Marcos Poplawski-Ribeiro, Sinem Kılıç Çelik

Government Consumption Volatility and the Size of Nations

Section: Articles
Volume 72 (2016) / Issue 2, pp. 211-228 (18)
Published 09.07.2018
DOI 10.1628/001522116X14660601438148
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Summary
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.