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Optimal size of public expenditure in the countries of the West African Economic and Monetary Union (WAEMU)

Author

Listed:
  • Maiga Nouhoun Oumarou

    (University of Thomas Sankara)

  • Sirpe Gnanderman

    (University of Thomas Sankara)

Abstract

This article uses annual data covering the period 2000-2019 to verify the existence of an optimal size of general government consumption expenditure in the countries of the West African Economic and Monetary Union (WAEMU). Our work is based on a quadratic modeling using the Armey curve (1995) developed by Vedder and Gallaway (1998). The Pooled Mean Group (PMG) estimator was used to perform the estimation. The results of the model's estimation lead to the conclusion that there is an optimal size of public expenditure estimated at 15.65%.

Suggested Citation

  • Maiga Nouhoun Oumarou & Sirpe Gnanderman, 2023. "Optimal size of public expenditure in the countries of the West African Economic and Monetary Union (WAEMU)," Economics Bulletin, AccessEcon, vol. 43(1), pages 146-160.
    • Handle: RePEc:ebl:ecbull:eb-22-00075
    as

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    References listed on IDEAS

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    More about this item

    Keywords

    Public expenditure; economic growth; optimal size; Armey curve; WAEMU;
    All these keywords.

    JEL classification:

    • E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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