Operational Aspects of Fiscal Policy in Oil-Producing Countries
By Steven A. Barnett, R. Ossowski. Social Science Research Network, 2002
234 citations recorded by the source corpus.
Oil-producing countries face challenges arising from the fact that oil revenue is exhaustible, volatile, and uncertain, and largely originates from abroad. Reflecting these challenges, the paper proposes some important general principles for the formulation and assessment of fiscal policy in these countries. The main findings can be summarized in some key guidelines: the non-oil balance should feature prominently in the formulation of fiscal policy; it should generally be adjusted gradually; the government should strive to accumulate substantial financial assets over the period of oil production; and, where necessary, strategies should aim at breaking procyclical fiscal responses to volatile oil prices.
View Paper: https://www.semanticscholar.org/paper/c593992e9e6cc960624401d12719565e64036fc1
How researchers see this paper
The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.
- Anthony J. Venables
- M. Brahmbhatt
- Thai‐Ha Le
- Otaviano Canuto
- Youngho Chang
- Paul Collier
- E. Vostroknutova
- R. van der Ploeg
Citations in the corpus
- Dealing with Dutch Disease (2010, background): “Much has been written on the best institutional arrangements to govern nonrenewable natural resource revenues (see Barnett and Ossowski [2002] for a review).”
- The impact of sovereign wealth funds on global financial markets (2008, background): “For a discussion on the relation between oil stabilisation funds 5 and fi scal policy, see, for example, Barnett, Davis and Ossowski (2001) and Barnett and Ossowski (2002).”
- Public Investment in Resource-Abundant Developing Countries (2012, unknown): “The conventional advice based on the permanent income hypothesis (PIH) prescribes that off-the-ground resource wealth should be saved externally in a sovereign wealth fund (for example, Davis and others, 2001; Barnett and Ossowski, 2003; and Bems and de Carvalho Filho, 2011).”
- Oil price shocks and trade imbalances (2013, background): “It is shown that an excessive focus on the overall trade balance often leads to fiscal policy moving in tandem with oil revenue, resulting in a volatile non-oil fiscal deficit with concomitant adverse macroeconomic and fiscal consequences (Barnett and Ossowski, 2002).”
- Managing Resource Revenues in Developing Economies (2010, methodology): “This hypothesis is familiar from the tax smoothing literature (Barro, 1979) or the optimal use of the current account (for example, Sachs, 1981), and underlies much of the advice for the setting up of an SWF proffered by the IMF (for example, Davis and others, 2002; Barnett and Ossowski, 2003; Ossow”