Analyzing Fiscal Space Using the MAMS Model: An Application to Burkina Faso

64 Pages Posted: 26 Oct 2009

See all articles by Jan Gottschalk

Jan Gottschalk

International Monetary Fund (IMF) - Policy Development and Review Department

Vu Manh Le,

affiliation not provided to SSRN

Hans Lofgren

World Bank

Kofi Nouve

World Bank

Date Written: October 2009

Abstract

This paper analyses economic implications and the transmission mechanisms of different options for creating and using fiscal space. For creating fiscal space, we consider prioritizing expenditures, raising revenue, and scaled-up aid. Fiscal space is used for increasing health and education spending, infrastructure spending, or both. The analysis takes place within the World Bank's MAMS model, which is a multisectoral real computable general equilibrium model that incorporates the Millennium Development Goals. The model has been calibrated for Burkina Faso, which serves as an illustrative country example. Some of the key results are that absorbing a more educated labor force requires fundamental structural change in the economy; increasing health and education spending can face sizeable capacity constraints; and infrastructure spending has a positive effect on growth as well as education and health outcomes.

Keywords: Burkina Faso, Capital inflows, Concessional aid, Economic growth, Economic models, Fiscal policy, Fiscal sector, Government expenditures, Human capital, Infrastructure, Millennium Development Goals, Resource mobilization, Revenue mobilization

Suggested Citation

Gottschalk, Jan and Manh Le,, Vu and Lofgren, Hans and Nouve, Kofi, Analyzing Fiscal Space Using the MAMS Model: An Application to Burkina Faso (October 2009). IMF Working Papers, Vol. , pp. 1-63, 2009. Available at SSRN: https://ssrn.com/abstract=1493544

Jan Gottschalk (Contact Author)

International Monetary Fund (IMF) - Policy Development and Review Department ( email )

700 19th St. NW
Washington, DC 20431
United States

Vu Manh Le,

affiliation not provided to SSRN

No Address Available

Hans Lofgren

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

Kofi Nouve

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
62
Abstract Views
731
rank
364,616
PlumX Metrics