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Big Government, High Debt, and Fiscal Adjustment in Small States, Rui Ota, Stephanie Medina Cas

Using a new fiscal dataset for small states, this paper analyzes the link between country size, government size, debt, and economic performance. It finds that on average small states have larger governments and higher public debt. Although there are intrinsic factors that explain why governments are bigger in small states, those with smaller governments and lower public debt tend to grow faster and are less vulnerable. Large fiscal adjustments, primarily through expenditure restraint, can underpin growth, although sometimes other elements can also impact. Since better governance is associated with lower debt, fiscal adjustment should be supported by governance improvements
Table Of Contents
Contents; I. Introduction; II. Fiscal Aspects of Small States: Stylized Facts; A. Definition of Small and Large States; B. The Fiscal Dataset; C. Fiscal Indicators; Figures; 1. Expenditures for Small and Large States, 1990-2004; 2. Revenues and Grants in Small and Large States, 1990-2004; 3. International Trade Taxes for Small States, 1990-2004; 4. Fiscal Indicators in Small and Large States, 1990-2005; 5. Average Real GDP Growth, 1990-2005; Tables; 1. Total Public Debt Levels in Small States; III. Factors that Explain Big Government and High Public Debt
Literary Form
non fiction
Description based upon print version of record
Physical Description
1 online resource (47 p.)
Specific Material Designation
Form Of Item

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