Fiscal Sustainability with Non-Renewable Resources

Chalk, Nigel

doi:10.5089/9781451844351.001

Cited by 39 publications

(17 citation statements)

References 9 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…Lastly, noncausality arises in a model in which tax and spending levels are determined by policymakers by targeting specific shares of GDP (Hoover and Sheffrin, 1992). Chalk (1998) has shown that oil-dependent countries can enjoy resource-related revenues that serve as a substitute for fiscal reform when the country's terms of trade are favorable. Arguably, government overspending can be financed through income 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 OIL DUTIES TAX REVENUE % of GDP Figure 2.…”

Section: The Connection Between Oil Revenues Taxes Government Spendmentioning

confidence: 99%

“…The analysis of the linkage between government revenues and expenditures is much more complex if taxation is not the only relevant source of public sector revenue. Chalk (1998) has shown that a country with a sizeable nonrenewable resource endowment (e.g., oil) can enjoy resource-related revenues that serve as a substitute for fiscal reform when the country's terms of trade are favorable (Gelb, 1988). Supposedly, government overspending can be financed through income generated by the appreciative resource endowment.…”

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

Government Spending, Taxation, and Oil Revenues in Mexico

Tijerina-Guajardo¹,

Pagán²

2003

Review Development Economics

View full text Add to dashboard Cite

The paper analyzes the intertemporal relationship between oil duties, taxes, government spending, and GDP in Mexico during the 1981-98 period. The results from estimating a VAR model, impulse response functions, and variance decompositions on the quarterly series of taxes, government spending, oil duties, and GDP suggest that there seems to be a substitution effect between oil duties and tax revenues, and that tax revenues are not able to absorb temporary decreases in oil duties. Also, increases in tax revenue might lead to increasing government spending, but short-run increases in government spending are not likely to lead to political pressure to reduce the expected budget deficit via increased taxation and/or oil revenues. Lastly, GDP is not stimulated in the short-run by temporary increases in government spending and, thus, stabilization measures adopted in recent years to reduce the size of the government are not likely to significantly undermine GDP growth.

show abstract

Section: The Connection Between Oil Revenues Taxes Government Spendmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Government Spending, Taxation, and Oil Revenues in Mexico

Tijerina-Guajardo¹,

Pagán²

2003

Review Development Economics

View full text Add to dashboard Cite

show abstract

“…The second strand of studies tends to investigate the optimal fiscal policy for oil-exporting countries, while the third on the other hand includes studies whose concerns are on how fiscal activities or variables in such economy respond to the changes in oil prices. Quite a number of studies have examined the optimal fiscal policy for oil-exporting countries (see, [9,10,11,12,13,14,15,16]).…”

Section: Review Of Literaturementioning

confidence: 99%

Oil Price Shocks and Fiscal Spending in Oil Producing Economy: The Role of Asymmetry

Muse¹

2018

JENRR

View full text Add to dashboard Cite

Given their over reliance on proceeds from the sale of crude oil, fiscal spending in the oil-producing economy are often characterised with some specific challenges mainly due to the uncertainty in the nature of oil price movements in the international crude oil market. Motivated by the historical up – down trends in the international oil prices and their potential implications particularly for oil-producing countries, this paper explores linear and non-linear ARDL frameworks to examine the symmetric and asymmetric impact of oil price shocks on fiscal spending. Using the case of the Nigerian economy, this empirical finding suggests that shocks to international oil prices did matter for fiscal spending in the oil-producing economy. On the direction of the impact of the shocks, the finding of the non-rejection of the null hypothesis of no asymmetry thus implies that fiscal spending in Nigeria reacts indifferently to either a positive or negative oil price shocks.

show abstract

“…Several empirical papers address fiscal sustainability in small oil exporting countries: Tersman (1991), Liuksila et al. (1994), Bascand and Razin (1997), Chalk (1998), Barnett and Ossowski (2002), Davoodi (2002), Baunsgaard (2003) and IMF (2003). These authors all use variants of the PI approach, which are expounded below.…”

Section: Fiscal Sustainability and Managing Oil Price Uncertaintymentioning

confidence: 99%

Fiscal sustainability, volatility and oil wealth

Wijnbergen

Budina

2011

Economics of Transition

View full text Add to dashboard Cite

Whether fiscal policy is sustainable depends on a government's future revenue and expenditure streams, both of which are highly uncertain. In commodity-rich countries, this problem is intensified by unpredictable and volatile commodity prices. We show how spending rules for oil income and non-oil primary deficits interact and influence the stochastic distribution of future debt stocks and demonstrate the variance reducing impact of feedback rules for primary deficits in a case study of oil-and-gas exporter Azerbaijan.JEL classifications: E27, E62, H63, H68, O13, Q38.

show abstract

Fiscal Sustainability with Non-Renewable Resources

Cited by 39 publications

References 9 publications

Government Spending, Taxation, and Oil Revenues in Mexico

Government Spending, Taxation, and Oil Revenues in Mexico

Oil Price Shocks and Fiscal Spending in Oil Producing Economy: The Role of Asymmetry

Fiscal sustainability, volatility and oil wealth

Contact Info

Product

Resources

About