Soutenabilité des finances publiques au Cameroun: Approche de Bohn (1998)

Testing Fiscal sustainability in Cameroon: Approach of Bohn (1998)

T. H. Jackson Ngwa Edielle

MPRA Paper from University Library of Munich, Germany

Abstract: In this paper, we test sustainability of Cameroon’s fiscal policy using the approach developed by Bohn (1998). We apply non parametric and semi-parametric regressions with time depending coefficients to estimate fiscal policy reaction function in Cameroon between 1975 and 2005. We find out that the response of primary surplus to GDP is a concave positive function of the debt-GDP ratio. Further, our estimates show that fiscal policy reaction coefficient has been significantly positive between 1975 and 2005. However, there is a negative trend in that coefficient which becomes positive after the year 1993.

JEL-codes: C14 E62 H62 H63 (search for similar items in EconPapers)
Date: 2006-12
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