Page files are primarily used as a hard storage backup for memory when you require more than your system hardware has available. Once you're close to exceeding the limits of the physical memory you have available, Windows begins to store pages of it into the
page file. Disabling it can lead to instability if you ever do exceed physical memory limits, namely application crashes and in some cases system failures.
Your page file should be your peak commit size at minimum and double it at maximum. You'd have to run some tests to see how much that would be, but honestly I don't really think it will matter if you're running 16 GB. I would set it to 2 GB or 1 GB.
Pushing the Limits of Windows: Virtual Memory
The above link leads to a very in-depth article which explains the formula behind setting your page file based on peak commit size.
Fruid wrote...
I don't know why Windows would use such a large page file.
Having a page file at the very least equal to the amount of RAM on your computer or double its size was the standard for quite a few years, doesn't seem like Microsoft has bothered to change the default page file size, likely due to some of the intense processing tasks workstations and servers are given. It would make a hell of a lot more sense to make it completely dynamically increase in size based on what's required, but god knows any kind of functional improvement that makes sense will take MS years to get to.