TY - BOOK ID - 84541513 TI - Optimal Fiscal Strategy for Oil Exporting Countries AU - Valdes, Rodrigo. AU - Engel, Eduardo. PY - 2000 SN - 1462383211 145277949X 1282110780 9786613803665 1451899505 PB - Washington, D.C. : International Monetary Fund, DB - UniCat KW - Investments: Energy KW - Macroeconomics KW - Public Finance KW - Fiscal Policy KW - National Deficit Surplus KW - Debt KW - Debt Management KW - Sovereign Debt KW - Macroeconomics: Consumption KW - Saving KW - Wealth KW - Aggregate Factor Income Distribution KW - Energy: Demand and Supply KW - Prices KW - Energy: General KW - National Government Expenditures and Related Policies: General KW - Investment & securities KW - Public finance & taxation KW - Consumption KW - Income KW - Oil prices KW - Oil KW - Expenditure KW - National accounts KW - Commodities KW - Economics KW - Petroleum industry and trade KW - Expenditures, Public KW - Kuwait UR - https://www.unicat.be/uniCat?func=search&query=sysid:84541513 AB - This paper develops simple guidelines for fiscal policy in oil producing countries, focusing on three issues: intergenerational oil distribution, precautionary saving, and adjustment costs. The paper presents a framework to analyze how the revenue generated by an exhaustible source of wealth that belongs to the government should be distributed between current and future generations. This framework is used to show the strengths and limitations of existing answers, which motivates a new approach for dealing with this question. The paper derives simple, closed form approximations to the optimal level of government expenditure when an important part of government revenue is generated by an uncertain and exhaustible natural resource such as oil. Price uncertainty, budget uncertainty, and the (possibly asymmetric) costs of adjusting expenditure levels are considered. ER -