Faithin Omaha eBook Collection

Download or read book Analyzing Fiscal Space Using the MAMS Model - An Application to Burkina Faso written by International Monetary Fund and published by International Monetary Fund. This book was released on 2009-10-01 with total page 65 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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.