Fiscal policy and economic dynamics in Niger

This paper studies the impact of fiscal policy on economic activity in Niger focusing on shocks and fluctuations in the business cycle. To this end we use a DSGE model with quarterly data using the Bayesian method. The data come from various sources: the Direction Générale du Budget et des Finances including the World Bank. The results show that (i) higher public investment spending has a positive effect on household consumption; (ii) lower tax rates are likely to boost the economy but their impact remains weak; (iii) public consumption spending particularly personnel-related spending has a negative effect on the Niger economy.