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 particular. This paper proposes an alternative decision making framework which is based on stylized facts in Africa.
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Find related papers by JEL classification: D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty O11 - Economic Development, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development