Pinto Moreira, EmmanuelBayraktar, Nihal2012-06-222012-06-222005-02https://hdl.handle.net/10986/8851The authors apply the dynamic macroeconomic framework developed by Agénor, Bayraktar, and El Aynaoui (2004) to Niger. As in the original model, linkages between foreign aid, public investment (disaggregated into education, infrastructure, and health), and growth are explicitly captured. Although the nominal exchange rate is fixed, the relative price of domestic goods is endogenous, thereby allowing for potential Dutch disease effects associated with increases in aid. The authors assess the impact of policy shocks on poverty by using partial growth elasticities. They perform various policy experiments, including an increase in the level of foreign aid, a reallocation of public investment toward infrastructure, and neutral and non-neutral cuts in tariffs. The simulations show the dynamic tradeoffs that these policies entail with respect to growth and poverty reduction in Niger.CC BY 3.0 IGOACCELERATORACCELERATOR EFFECTACCOUNTINGADVERSE EFFECTSAGGREGATE DEMANDAGRICULTUREBALANCE OF PAYMENTSBANKING SECTORBANKING SYSTEMBASIC EDUCATIONBORROWINGBUDGETARY ASSISTANCECAPITAL FORMATIONCENTRAL BANKCIVIL SERVICECOMPETITIVENESSCORPORATE INCOME TAXESCURRENCYCURRENT ACCOUNTCURRENT PRICESDEBTDEBT RELIEFDEBT SERVICEDEFICIT FINANCINGDEPOSITSDEVALUATIONDEVELOPMENT ASSISTANCEDIRECT INVESTMENTDISPOSABLE INCOMEDOMESTIC BORROWINGECONOMIC BOOMECONOMIC GROWTHECONOMIC RECOVERYECONOMIC STRUCTUREELASTICITIESELASTICITYELASTICITY OF SUBSTITUTIONELECTRICITYEQUATIONSEQUILIBRIUMEXCHANGE RATEEXOGENOUS VARIABLESEXPLOITATIONEXPORTSFINANCIAL INTERMEDIATIONFISCAL POLICIESFOREIGN ASSETSGDPGINI COEFFICIENTGNPGNP PER CAPITAGOVERNMENT SPENDINGGROWTH RATEHEALTH SERVICESHUMAN DEVELOPMENTIMPORTSINCOMEINFLATIONINTEREST PAYMENTSINTEREST RATEINVESTMENT POLICYINVESTMENT SPENDINGLINKAGESLIVING CONDITIONSLIVING STANDARDSMACROECONOMIC STABILITYMARGINAL PRODUCTIVITYMARKET PRICESMINESMONETARY POLICIESMORAL HAZARDPOPULATION GROWTHPOVERTY LINEPRESENT VALUEPRIVATE CONSUMPTIONPRIVATE INVESTMENTPRODUCTION FUNCTIONPUBLIC DEBTPUBLIC EMPLOYMENTPUBLIC ENTERPRISESPUBLIC EXPENDITUREPUBLIC FINANCEPUBLIC FINANCE MANAGEMENTPUBLIC INVESTMENTPUBLIC INVESTMENT IN INFRASTRUCTUREPUBLIC SECTORPUBLIC SERVICESPUBLIC SPENDINGREAL GDPREVENUE MOBILIZATIONREVENUE PERFORMANCEROADSSAVINGSSIDE EFFECTSSTOCKSSTRUCTURAL ADJUSTMENTTAXTAX COLLECTIONTAX REVENUETAXATIONTELECOMMUNICATIONSTRADE UNIONSUNEMPLOYMENTURBANIZATIONVALUE OF OUTPUTWAGESWorld Bank10.1596/1813-9450-3506