We argue that the literature on government size suffers from neglecting the role of governance both as a driving and a limiting factor for government spending. Cross-country evidence for a sample of 126 developed and developing countries averaging data for the period 2003-07 reveals that better...

This paper investigates how government size influences the responses of government expenditure and economic growth to broad dollar shocks in 155 trade-heavy countries across 6 continents from 1995 to 2019. In most cases, we document that the magnitude of contractions in expenditures and economic...