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Non-Linear Response of Fiscal Policy to the Business Cycle: Empirical Evidence in Sub-Saharan Africa

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  • Idrys Fransmel Okombi

    (Marien Ngouabi University)

Abstract

This article examines the cyclicality of tax policy on a sample of 12 Sub-Saharan African countries for the period 2004-2018. Based on the threshold effect model (PTR), the results show that there are thresholds for mining rent, credit, public debt and corruption, which condition the passage from the pro-cyclical fiscal reaction to the counter-cyclical fiscal reaction in sub-Saharan Africa.

Suggested Citation

  • Idrys Fransmel Okombi, 2021. "Non-Linear Response of Fiscal Policy to the Business Cycle: Empirical Evidence in Sub-Saharan Africa," Economics Bulletin, AccessEcon, vol. 41(3), pages 1097-1112.
    • Handle: RePEc:ebl:ecbull:eb-20-00940
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    Cited by:

    1. Okombi, Idrys Fransmel & Mampieme, Vaccili Belneche, 2024. "Cyclicality of public debt in developing countries: Does dependence on natural resources matter?," Resources Policy, Elsevier, vol. 96(C).

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    More about this item

    Keywords

    Fiscal Policy; Business Cycle; Africa.;
    All these keywords.

    JEL classification:

    • E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook
    • E3 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles

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