FISCAL SUSTAINABILITY AND FISCAL FATIGUE: EMPIRICAL EVIDENCE FROM LESOTHO

Published: 7 September 2023| Version 1 | DOI: 10.17632/t52ncv32md.1
Contributor:
Denis Yuni

Description

The data was used for a study that assessed fiscal policy sustainability and fiscal fatigue in Lesotho. Mainly, the study aims to investigate how primary fiscal balance responds to the rising debt-to-GDP ratio. Additionally, the study also seeks to examine the extent of Lesotho's fiscal fatigue. The study employs annual time series data over 1988-2020 to estimate fiscal reaction function using the ARDL co-integrating technique to capture the response of primary balance to debt ratio.

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Steps to reproduce

Using Eviews, follow the paper to replicate results.

Institutions

  • National University of Lesotho

Categories

Fiscal Policy, Fiscal Policy in Development

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