Reflecting diseconomies of scale in providing public goods and services, recurrent spending in small states typically represents a large share of GDP. For some small states, this limits the fiscal space available for growth-promoting capital spending. Small states generally face greater revenue...

Reflecting diseconomies of scale in providing public goods and services, recurrent spending in small states typically represents a large share of GDP. For some small states, this limits the fiscal space available for growth-promoting capital spending. Small states generally face greater revenue...

This paper proposes a methodology to develop empirically based and theoreticallyconsistent deeuroization policies. It is derived from the experience of Albania. The paperis the first attempt to provide an empirical measure of the optimal level of euroization.The results indicate that euroization...