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• W4286213911 abstract "Abstract The article examines the impact of the COVID‐19 pandemic on economies in Africa through the application of a novel Debt, Investment and Growth model with a segmented Labor market (DIG‐Labor). The pandemic is modeled via supply shock that disrupts economic activities in countries in Africa, followed by effects on household consumption behavior and welfare, and business investment decisions. The DIG‐Labor model is calibrated to account for informality, which is a key characteristic of economies in Africa. We find that, in the absence of appropriate remedial measures, the COVID‐19 pandemic reduces employment in the formal and informal sectors and scales back consumption for savers and non‐savers, with the reduction in consumption being more pronounced for savers. These contractions lead to an economic recession in Africa and widen the fiscal and current account deficits, among others. The effects of fiscal stimulus packages in response to the COVID‐19 pandemic and various financing mechanisms are also examined. A key finding is that various policy responses to the emerging COVID‐19 induced macroeconomic imbalances have diverse implications, which should be carefully examined to mitigate the negative consequences while maximizing the opportunities for a swift, stronger and more inclusive economic recovery." @default.
• W4286213911 created "2022-07-21" @default.
• W4286213911 creator A5008692632 @default.
• W4286213911 creator A5001371081 @default.
• W4286213911 date "2022-07-01" @default.
• W4286213911 modified "2023-10-10" @default.
• W4286213911 title "Fiscal sustainability in Africa: Accelerating the post‐COVID‐19 recovery through improved public finances" @default.
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• W4286213911 doi "https://doi.org/10.1111/1467-8268.12648" @default.
• W4286213911 hasPubMedId "https://pubmed.ncbi.nlm.nih.gov/35942503" @default.
• W4286213911 hasPublicationYear "2022" @default.
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