Soutenabilité des finances publiques au Cameroun : Approche de Bohn (1998) [Testing Fiscal sustainability in Cameroon : Approach of Bohn (1998)]

In this paper, we test sustainability of Cameroon’s fiscal policy using the approach developed by Bohn (1998). We apply non parametric and semi-parametric regressions with time depending coefficients to estimate fiscal policy reaction function in Cameroon between 1975 and 2005. We find out that the response of primary surplus to GDP is a concave positive function of the debt-GDP ratio. Further, our estimates show that fiscal policy reaction coefficient has been significantly positive between 1975 and 2005. However, there is a negative trend in that coefficient which becomes positive after the year 1993.