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

_IMF Working Papers, October 1, 2009_

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## Bibliographic details
- Published: October 1, 2009
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451873740.001

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### Summary
- This paper analyses economic implications and the transmission mechanisms of different options for creating and using fiscal space.
- For creating fiscal space, the paper considers: 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, 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.

### Methodology and Model
- Model: World Bank's MAMS model; described as a multisectoral real computable general equilibrium model that incorporates the Millennium Development Goals.
- Calibration: Model calibrated for Burkina Faso (illustrative country example).
- Analytical focus: transmission mechanisms of fiscal space creation and use, and implications for growth, labor absorption, education, and health outcomes.

### Scenarios and Policy Instruments Examined
- Options for creating fiscal space:
  - Prioritizing expenditures
  - Raising revenue
  - Scaled-up aid
- Uses of fiscal space:
  - Increasing health spending
  - Increasing education spending
  - Increasing infrastructure spending
  - Combining health, education, and infrastructure spending

### Key Findings
- Absorbing a more educated labor force requires fundamental structural change in the economy.
- Increasing health and education spending can face sizeable capacity constraints.
- Infrastructure spending has a positive effect on growth as well as education and health outcomes.

### Subjects and Keywords
- Subject: Education, Expenditure, Fiscal space, Labor, Wages
- Keywords: exchange rate, private sector, real GDP, reservation wage, wage rate, WP

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_Source: https://www.imf.org/en/publications/wp/issues/2016/12/31/analyzing-fiscal-space-using-the-mams-model-an-application-to-burkina-faso-23331_