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Analyzing Fiscal Space Using the MAMS Model - An Application to Burkina Faso

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  • International Monetary Fund

Abstract

This paper analyses economic implications and the transmission mechanisms of different options for creating and using fiscal space. For creating fiscal space, we consider prioritizing expenditures, raising revenue, and scaled-up aid. Fiscal space is used for increasing health and education spending, infrastructure spending, or both. The analysis takes place within the World Bank's MAMS model, which is a multisectoral real computable general equilibrium model that incorporates the Millennium Development Goals. The model has been calibrated for Burkina Faso, which serves as an illustrative country example. Some of the key results are that absorbing a more educated labor force requires fundamental structural change in the economy; increasing health and education spending can face sizeable capacity constraints; and infrastructure spending has a positive effect on growth as well as education and health outcomes.

Suggested Citation

  • International Monetary Fund, 2009. "Analyzing Fiscal Space Using the MAMS Model - An Application to Burkina Faso," IMF Working Papers 2009/227, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2009/227
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    Cited by:

    1. Al-Batuly, Abdulmajeed & Al-Hawri, Mohamed & Cicowiez, Martin & Lofgren, Hans & Pournik, Mohammad, 2012. "Achieving the MDGs in Yemen : an assessment," Policy Research Working Paper Series 6013, The World Bank.
    2. John Cockburn & Hélène Maisonnave & Véronique Robichaud & Luca Tiberti, 2016. "Fiscal Space and Public Spending on Children in Burkina Faso1 [Burkina Faso. Classification-JEL: I32, D58, C50, O55]," International Journal of Microsimulation, International Microsimulation Association, vol. 9(1), pages 5-23.
    3. John Cockburn & Hélène Maisonnave & Véronique Robichaud & Luca Tiberti, 2013. "Fiscal Space and Public Spending on Children in Burkina Faso," Cahiers de recherche 1308, CIRPEE.
    4. Cherrier, Cecile & Ninno, Carlo del & Razmara, Setareh, 2011. "Burkina Faso social safety nets," Social Protection Discussion Papers and Notes 88994, The World Bank.
    5. Lofgren, Hans & Cicowiez, Martin & Diaz-Bonilla, Carolina, 2013. "MAMS – A Computable General Equilibrium Model for Developing Country Strategy Analysis," Handbook of Computable General Equilibrium Modeling, in: Peter B. Dixon & Dale Jorgenson (ed.), Handbook of Computable General Equilibrium Modeling, edition 1, volume 1, chapter 0, pages 159-276, Elsevier.

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