Fiscal Rules and the Pro-Cycylicality of Public Investment in the West African Economic and Monetary Union

• Tác giả: Sébastien Dessus
• Ngôn ngữ: eng
• Ký hiệu phân loại: 342.26 Constitutional and administrative law
• Thông tin xuất bản: World Bank, Washington, DC, 2013
• Bộ sưu tập: Tài liệu truy cập mở
• ID: 228620
• Chủ đề: 1. ACCESS TO CAPITAL; 2. ACCESS TO CAPITAL MARKETS; 3. ACCOUNTING; 4. AGGREGATE FISCAL; 5. AGGREGATE FISCAL DISCIPLINE

Tóm tắt

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.