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In the macroeconomics of developing countries, the government's fiscal response to external finance is exclusively studied using an optimization framework. This approach not only is inherently inconsistent by diverges from the reality in developing countires in general and African economies in...
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episodes on household income, medical spending, labour supply and consumption. We find that despite maintaining household … labour supply, a serious illness exerts a negative effect on household income for the poor. However, the estimates do not … leads to an increase in household debt-to-income ratios with possible detrimental effects on future consumption. …
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