Includes bibliographical references.
|Series||IMF working paper -- WP/94/137|
|Contributions||International Monetary Fund.|
|The Physical Object|
|Pagination||iv, 38 p. ;|
|Number of Pages||38|
Get this from a library! Fiscal Policy Sustainability in Oil-Producing Countries. [Sheila Bassett; Alejandro García; Claire Liuksila] -- Assessing the sustainability of a given fiscal policy is especially important for countries that depend on income from exhaustible resources. Political and growth pressures may push governments to. Downloadable! Assessing the sustainability of a given fiscal policy is especially important for countries that depend on income from exhaustible resources. Political and growth pressures may push governments to raise expenditure when revenue from exhaustible resources rises, but cutting outlays when price swings reduce income is often difficult. I. Introduction. Oil-producing countries face challenges arising from the fact that oil revenue is exhaustible, volatile, and uncertain and largely originates from exhaustibility of oil raises complex issues of sustainability and intergenerational resource allocation. The uncertainty and volatility of oil revenue complicates macroeconomic management and fiscal . Fiscal Policy Sustainability in Oil-Producing Countries. Bassett, Sheila, () Fiscal policy sustainability in oil-producing countries. Liuksila, Claire, .
This paper presents a detailed analysis of the average fiscal policy responses of oil producing countries (OPCs) to the recent oil price cycle. We find that OPCs worsened their non-oil primary balances substantially during driven by an increase in primary spending. • Assessed on the basis of a sustainability benchmark, the long-term fiscal sustainability of a number of oil-producing countries improved between . other models operating in other oil producing countries is a matter of policy decision that is regulating the use of the resource wealth espe- cially in funding government budget. Downloadable! The paper presents numerical simulations of various fiscal rules for oil-producing countries. Welfare implications are sensitive to the choice of the social welfare function, initial conditions, and non-oil growth prospects. The distribution of non-oil wealth is important for countries with relatively low oil reserves. Corrections for adjustment costs and uncertainty with .
External Sustainability of Oil-Producing Sub-Saharan African Countries by York Robert C. and Takebe Misa In the extensive empirical work carried out across the IMF on oil-producing sub-Saharan African (SSA) countries, the notion of "sustainability" is often directed toward fiscal policies, and, in particular, views on the "optimal" non-oil. In an oil-producing country, fiscal policy might aim to mod- sustainability, in which case the private sector would likely counteract government intervention by increasing savings or even moving money offshore, rather than investing or con- . What are fiscal policy rules? What are the principal benefits and drawbacks associated with various fiscal rules, particularly compared with alternative approaches to fiscal adjustment? Can fiscal rules contribute to long-run sustainability and welfare without sacrificing short-run stabilization? If so, what characteristics of fiscal rules make this contribution most effective? Can fiscal rules contribute to long-run sustainability and welfare without sacrificing short-run stabilization? If so, what characteristics of fiscal rules make this contribution most effective? And in what circumstances and contexts, if any should the IMF encourage its member countries to adopt fiscal rules?Brand: INTERNATIONAL MONETARY FUND.