An empirical study of public debt sustainability based on fiscal fatigue and fiscal space in CEMAC countries
Abstract This paper seeks first to test whether there is evidence of fiscal fatigue in the Central Africa Economic and Monetary Community (CEMAC) countries. On the contrary, we want to investigate the impact of fiscal rules on fiscal space to see if the implementation of fiscal rules enhances fiscal...
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| Format: | Article |
| Language: | English |
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Wiley
2022-09-01
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| Series: | International Studies of Economics |
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| Online Access: | https://doi.org/10.1002/ise3.7 |
| _version_ | 1797854841641369600 |
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| author | Ulrich Ekouala Makala |
| author_facet | Ulrich Ekouala Makala |
| author_sort | Ulrich Ekouala Makala |
| collection | DOAJ |
| description | Abstract This paper seeks first to test whether there is evidence of fiscal fatigue in the Central Africa Economic and Monetary Community (CEMAC) countries. On the contrary, we want to investigate the impact of fiscal rules on fiscal space to see if the implementation of fiscal rules enhances fiscal space in the region. The findings show evidence of fiscal fatigue for the Republic of Congo, Equatorial Guinea, and Gabon while Cameroon, the Central African Republic, and Chad exhibit no fiscal fatigue behavior. For our second objective, while analyzing the determinants of fiscal space we found that the two fiscal rules (the balanced budget rule and debt rule) implemented in CEMAC Zone do not improve fiscal space. Therefore, there is a need for the fiscal policy stance to supervise the conduct of fiscal rules in the CEMAC region as fiscal rules themselves do not enhance the available fiscal space. Besides, we suggest CEMAC's fiscal policy authorities to integrate the expenditure rule in their fiscal policy framework to mitigate the government expenditure bias. |
| first_indexed | 2024-04-09T20:12:46Z |
| format | Article |
| id | doaj.art-0a97ff9f24234d67a744c82baf1f973c |
| institution | Directory Open Access Journal |
| issn | 2831-3224 |
| language | English |
| last_indexed | 2024-04-09T20:12:46Z |
| publishDate | 2022-09-01 |
| publisher | Wiley |
| record_format | Article |
| series | International Studies of Economics |
| spelling | doaj.art-0a97ff9f24234d67a744c82baf1f973c2023-03-31T13:40:21ZengWileyInternational Studies of Economics2831-32242022-09-0117333437010.1002/ise3.7An empirical study of public debt sustainability based on fiscal fatigue and fiscal space in CEMAC countriesUlrich Ekouala Makala0School of Finance Central University of Finance and Economics (CUFE) Beijing ChinaAbstract This paper seeks first to test whether there is evidence of fiscal fatigue in the Central Africa Economic and Monetary Community (CEMAC) countries. On the contrary, we want to investigate the impact of fiscal rules on fiscal space to see if the implementation of fiscal rules enhances fiscal space in the region. The findings show evidence of fiscal fatigue for the Republic of Congo, Equatorial Guinea, and Gabon while Cameroon, the Central African Republic, and Chad exhibit no fiscal fatigue behavior. For our second objective, while analyzing the determinants of fiscal space we found that the two fiscal rules (the balanced budget rule and debt rule) implemented in CEMAC Zone do not improve fiscal space. Therefore, there is a need for the fiscal policy stance to supervise the conduct of fiscal rules in the CEMAC region as fiscal rules themselves do not enhance the available fiscal space. Besides, we suggest CEMAC's fiscal policy authorities to integrate the expenditure rule in their fiscal policy framework to mitigate the government expenditure bias.https://doi.org/10.1002/ise3.7CEMACdebt sustainabilityfiscal fatiguefiscal reaction functionfiscal rulesfiscal space |
| spellingShingle | Ulrich Ekouala Makala An empirical study of public debt sustainability based on fiscal fatigue and fiscal space in CEMAC countries International Studies of Economics CEMAC debt sustainability fiscal fatigue fiscal reaction function fiscal rules fiscal space |
| title | An empirical study of public debt sustainability based on fiscal fatigue and fiscal space in CEMAC countries |
| title_full | An empirical study of public debt sustainability based on fiscal fatigue and fiscal space in CEMAC countries |
| title_fullStr | An empirical study of public debt sustainability based on fiscal fatigue and fiscal space in CEMAC countries |
| title_full_unstemmed | An empirical study of public debt sustainability based on fiscal fatigue and fiscal space in CEMAC countries |
| title_short | An empirical study of public debt sustainability based on fiscal fatigue and fiscal space in CEMAC countries |
| title_sort | empirical study of public debt sustainability based on fiscal fatigue and fiscal space in cemac countries |
| topic | CEMAC debt sustainability fiscal fatigue fiscal reaction function fiscal rules fiscal space |
| url | https://doi.org/10.1002/ise3.7 |
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