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There are two considerations, voltage drop and heat buildup. The smaller the wire is, the higher the resistance is. When the resistance is higher, the wire heats up more, and there is more voltage drop in the wiring. The former is why you need higher-temperature insulation and/or bigger wires for use in conduit; the latter is why you should use larger wire for long runs. Neither effect is very significant over very short distances. There are some very specific exceptions, where use of smaller wire is allowed. The obvious one is the line cord on most lamps. Don't try this unless you're certain that your use fits one of those exceptions; you can never go wrong by using larger wire.
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Last Update May 13 2007 @ 00:22 AM