Fiscal rules and the pro-cyclicality of public investment in the West African economic and monetary union
Sebastien Dessus (),
Jose Luis Diaz Sanchez and
Authors registered in the RePEc Author Service: Jose Luis Diaz Sanchez
No 6562, Policy Research Working Paper Series from The World Bank
Evidence from a large panel of low-income and lower middle-income countries over the period 1995-2012 suggests that, contrary to other countries, public investment in the West African Economic and Monetary Union (WAEMU) has been pro-cyclical. Public investment contracts more in"bad times"than it increases in"good times"and appears to have become pro-cyclical since the introduction of the fiscal convergence criteria in 1994. The pro-cyclicality of public expenditure and the high asymmetry of shocks that affect WAEMU countries justify exploring options for greater counter-cyclicality of rules-based fiscal frameworks and for risk-sharing.
Keywords: Public Sector Expenditure Policy; Debt Markets; Economic Stabilization; Fiscal Adjustment; Access to Finance (search for similar items in EconPapers)
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Journal Article: Fiscal Rules and the Pro‐cyclicality of Public Investment in the West African Economic and Monetary Union (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:wbk:wbrwps:6562
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