Dons, prêts et cycles budgétaires: une analyse comparative des stabilisateurs automatiques et de la discrétion en zone Franc

Grants, Loans, and Fiscal Cycles: A Comparative Analysis of Automatic Stabilizers and Discretionary Policy in the Franc Zone

Cosmas Bernard Meka’a,, Etgard Manga Engama and Jouvelle Marbella Nnakane

MPRA Paper from University Library of Munich, Germany

Abstract: Abstract: This paper analyzes the effect of concessional public debt (CPD) and grants on the cyclicality of fiscal policy in the Franc Zone from 1994 to 2020. Using pooled mean group (PMG) estimators with Driscoll-Kraay standard errors, the main findings show that CPD is systematically associated with procyclicality, for both the discretionary component and automatic stabilizers. Conversely, grants tend to have a countercyclical effect, mainly through automatic stabilizers. ressource distribution equality favors countercyclicality, while corruption reinforces procyclicality. These results imply that aid modalities influence fiscal space. They suggest prioritizing grants for social spending, relaxing loan conditionalities during recessions, and strengthening institutions.

Keywords: Cyclicité; discrétionnaire; stabilisateur automatique; dynamique (search for similar items in EconPapers)
JEL-codes: E32 E62 F35 O19 (search for similar items in EconPapers)
Date: 2026-08-10
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:130698

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