Natural Resource Depletion Habit Formation And Sustainable Fiscal Policy

Author : Daniel Leigh
Publisher : International Monetary Fund
ISBN 13 :
Total Pages : 34 pages
Book Rating : 4.35/5 ( download)

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Download or read book Natural-Resource Depletion, Habit Formation, and Sustainable Fiscal Policy written by Daniel Leigh and published by International Monetary Fund. This book was released on 2006-08 with total page 34 pages. Available in PDF, EPUB and Kindle. Book excerpt: While models based on Friedman's (1957) permanent-income hypothesis can provide oilproducing countries with long-run fiscal targets, they usually abstract from short-run costs associated with consolidation. This paper proposes a model that takes such adjustment costs (or "habits") into account. Further operational realism is added by permitting differential interest rates on sovereign debt and financial assets. The approach is applied to Gabon, where oil reserves are expected to be exhausted in 30 years. The results suggest that Gabon's current fiscal-policy stance cannot be maintained, while the presence of habits justifies smoothing the bulk of the adjustment toward the sustainable level over three to five years.

Author : Mr.Nigel Andrew Chalk
Publisher : International Monetary Fund
ISBN 13 : 1451844352
Total Pages : 37 pages
Book Rating : 4.51/5 ( download)

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Download or read book Fiscal Sustainability with Non-Renewable Resources written by Mr.Nigel Andrew Chalk and published by International Monetary Fund. This book was released on 1998-03-01 with total page 37 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper assesses sustainable fiscal behavior in an economy where wealth is derived predominantly from a non-renewable resource. It explores the issue in a simple dynamic framework that highlights the structural weaknesses in the underlying budgetary position, takes into account the rate of depletion of a country’s natural resource base, and examines the impact of changes in a country’s terms of trade. An alternative indicator of fiscal sustainability is derived, and the principal factors determining sustainability are identified. The results of the analysis are applied to Venezuela and Kuwait.

Author : Stéphane Carcillo
Publisher : International Monetary Fund
ISBN 13 :
Total Pages : 34 pages
Book Rating : 4.44/5 ( download)

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Download or read book Catch-Up Growth, Habits, Oil Depletion, and Fiscal Policy written by Stéphane Carcillo and published by International Monetary Fund. This book was released on 2007-04 with total page 34 pages. Available in PDF, EPUB and Kindle. Book excerpt: In a number of oil producing countries, oil revenue accounts for the majority of government revenue, but is expected to be depleted in a relatively short time frame. Ensuring that fiscal policy is on a sustainable path is thus a high priority, but political and social adjustment costs create incentives to delay fiscal consolidation. This paper estimates how the permanently sustainable non-oil primary deficit (PSNOPD) depends on the speed of consolidation, using an optimization model with habit formation. Realism is added by allowing for negative growth-adjusted interest rates during a temporary period of catch-up growth. Applied to the Republic of Congo, this approach leads to the following conclusions: (i) the current fiscalpolicy stance is unsustainable; (ii) social adjustment costs justify spreading the bulk of the adjustment over five years; and (iii) the slower the adjustment, the lower the PSNOPD level.

Author : International Monetary Fund
Publisher : International Monetary Fund
ISBN 13 : 1451813996
Total Pages : 88 pages
Book Rating : 4.99/5 ( download)

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Download or read book Gabon written by International Monetary Fund and published by International Monetary Fund. This book was released on 2006-06-20 with total page 88 pages. Available in PDF, EPUB and Kindle. Book excerpt: Efficiency and equity reasons suggest placing a high priority on ensuring that fiscal policy is on a sustainable path. This chapter has sought to estimate the sustainable long-term non-oil primary deficit and the optimal adjustment path toward that level. The banks’ inability to monitor effectively the quality of their loan portfolios, paired with the high interest-rate floor on deposits, are key factors behind the very low degree of financial intermediation. The reform of fuel price subsidies in Gabon is necessary to facilitate pro-poor economic growth.

Author : Mariusz Jarmuzek
Publisher : International Monetary Fund
ISBN 13 : 1484346149
Total Pages : 33 pages
Book Rating : 4.43/5 ( download)

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Download or read book Designing a Fiscal Framework for a Prospective Commodity Producer written by Mariusz Jarmuzek and published by International Monetary Fund. This book was released on 2014-10-23 with total page 33 pages. Available in PDF, EPUB and Kindle. Book excerpt: Lebanon is expected to have gas resources in its Mediterranean basin, and these could turn the country into a natural gas producer over the next decade. Lebanon’s economy and institutions will thus need to adapt to the challenges and opportunities that such change will bring. In this paper, we address how Lebanon’s fiscal framework will need to be reformulated to take into account potential resource revenue. Designing a fiscal regime appropriately is an absolute prerequisite to make sure the government can receive a fair share of the resources while investors face appropriate incentives to invest and develop the sector. This step should be followed by setting macro-fiscal anchors and supporting institutions. The prospective framework should initially be focused on ensuring fiscal sustainability and intergenerational equity, given the estimated relatively short horizon of Lebanon’s gas resources. Strong institutional arrangements also need to underpin the prospective framework, to ensure that the pace of resource wealth’s use is set in line with Lebanon’s capacity constraints.

Author : International Monetary Fund. Research Dept.
Publisher : International Monetary Fund
ISBN 13 : 1589069110
Total Pages : 288 pages
Book Rating : 4.14/5 ( download)

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Download or read book IMF Staff Papers, Volume 57, No. 1 written by International Monetary Fund. Research Dept. and published by International Monetary Fund. This book was released on 2010-03-26 with total page 288 pages. Available in PDF, EPUB and Kindle. Book excerpt: Do highly indebted countries suffer from a debt overhang? Can debt relief foster their growth rates? To answer these important questions, this article looks at how the debt-growth relation varies with indebtedness levels, as well as with the quality of policies and institutions, in a panel of developing countries. The main findings are that, in countries with good policies and institutions, there is evidence of debt overhang when the net present value of debt rises above 20–25 percent of GDP; however, debt becomes irrelevant above 70–80 percent. In countries with bad policies and institutions, thresholds appear to be lower, but the evidence of debt overhang is weaker and we cannot rule out that debt is always irrelevant. Indeed, in such countries, as well as in countries with high indebtedness levels, investment does not depend on debt levels. The analysis suggests that not all countries are likely to profit from debt relief, and thus that a one-size-fits-all debt relief approach might not be the most appropriate one.

Author : Holger Fabig
Publisher : International Monetary Fund
ISBN 13 : 1451870140
Total Pages : 32 pages
Book Rating : 4.45/5 ( download)

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Download or read book Modeling Macro-Critical Energy Sectors in Low-Income Countries written by Holger Fabig and published by International Monetary Fund. This book was released on 2008-06-01 with total page 32 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper proposes a general framework for monitoring macro-critical energy sectors in low-income countries, defined as consisting of the three subsectors of crude oil and natural gas production, refinery, and electricity production. It aims to derive consistent information on physical and financial flows in the sector, including on interlinkages between the subsectors. It then applies this framework to Côte d'Ivoire. While being an important source of growth, the Ivoirien energy sector is found to have important shortcomings, in particular as regards transparency, efficiency and contribution to fiscal revenue. Among the key problems are partially intransparent production sharing arrangements for hydrocarbon production, price distortions for natural gas, administered prices for refined petroleum products, underfunding and lack of investment in the electricity sector, and inefficient government subsidies in the latter two subsectors.

Author : Luttrell, C.
Publisher : CIFOR
ISBN 13 : 6023870511
Total Pages : 18 pages
Book Rating : 4.16/5 ( download)

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Download or read book Lessons for multi-level REDD+ benefit-sharing from revenue distribution in extractive resource sectors (oil, gas and mining) written by Luttrell, C. and published by CIFOR. This book was released on 2017-02-06 with total page 18 pages. Available in PDF, EPUB and Kindle. Book excerpt: This brief focuses on lessons from the extractive resource sectors (oil, gas and mining) for REDD+ benefit-sharing. Specifically, it examines the different ways that revenues accruing to the government are distributed to subnational levels and the outcomes of different arrangements for doing so. These lessons are particularly relevant for scenarios where REDD+ revenues might reach significant volumes. Two main sorts of revenue would need to be distributed in the case of REDD+: i) payments to central or sub-national governments from international sources for emissions reduced and ii) taxes and fees collected by central government from REDD+ activities (Irawan et al. 2014). In both cases, decisions are needed on how to redistribute revenue between central and sub-national levels. A key concern in decisions over public revenues is allocation across jurisdictions. In this paper, we look at the rationales behind the way revenues from the sector are shared both with sub-national governments and across extractive and non-extractive localities. This experience is relevant for key questions facing REDD+ such as how to link benefit to performance at the sub-national levels, how to compensate costs, how to distribute benefits across a nation and how to enhance development outcomes. In so doing, we address key concerns in the debate about REDD+ benefit-sharing. These include how REDD+ might act as an incentive for reducing deforestation and degradation, and how it might also be integrated into development planning to help achieve wider outcomes.

Author : Takuji Kinkyo
Publisher : World Scientific
ISBN 13 : 9814713414
Total Pages : 232 pages
Book Rating : 4.12/5 ( download)

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Download or read book Financial Linkages, Remittances, and Resource Dependence in East Asia written by Takuji Kinkyo and published by World Scientific. This book was released on 2016-01-06 with total page 232 pages. Available in PDF, EPUB and Kindle. Book excerpt: ' The purpose of this book is to empirically analyse the multifaceted nature of financial linkages in East Asia and to discuss the key policy challenges faced by the region''s economies. Although the emphasis is placed on East Asia, some of the chapters cover a broader area of countries depending on the aim of the study. Particular areas of focus in these studies include: the evolution of cross-border financial linkages in East Asia; long-run economic consequences of remittance inflows and natural resource dependence; and policy priorities for the financial integration and management of resource-rich economies. Contents:The Evolution of Cross-Border Financial Linkages in East Asia:Asia-Pacific Economic Linkages: Empirical Evidence in the GVAR Framework (Wang Chen and Takuji Kinkyo)Linkages Among East Asian Stock Markets, US Financial Markets Stress, and Gold (Takashi Miyazaki and Shigeyuki Hamori)Business Cycle Volatility and Hot Money in Emerging East Asian Markets (Xiaojing Cai and Shigeyuki Hamori)Long-Run Economic Consequences of Remittance Inflows and Natural Resource Dependence:Dynamic Impacts of Remittances on Economic Growth in Asia: Evidence from the Dynamic Heterogeneous Panel (Nannan Yuan, Takeshi Inoue and Shigeyuki Hamori)Effects of Remittances on Poverty Reduction in Asia (Takeshi Inoue and Shigeyuki Hamori)Financial Development and Growth in Resource-Rich Countries (Kazue Demachi and Takuji Kinkyo)Policy Priorities for the Financial Integration and Management of Resource-Rich Economies:Spillovers of Financial Stress Shocks: Evidence and Policy Implications (Wang Chen and Takuji Kinkyo)Challenges to Macroeconomic Management in Resource–Rich Developing Economies (Kazue Demachi and Takuji Kinkyo)Policies and Prospects of ASEAN Financial Integration (Satoshi Shimizu) Readership: Advanced undergraduate or postgraduate students studying Asian economics (particularly East Asian economics). Keywords:Financial Linkages;Remittances;Natural Resources;Financial Development;Financial Integration;Economic Growth;Business Cycle;Poverty Reduction;East Asia;ASEAN'

Author : Olivier Cattaneo
Publisher : World Bank Publications
ISBN 13 : 0821385038
Total Pages : 416 pages
Book Rating : 4.36/5 ( download)

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Download or read book Global Value Chains in a Postcrisis World written by Olivier Cattaneo and published by World Bank Publications. This book was released on 2010-09-13 with total page 416 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book looks to address the following questions in a post-crisis world: How have lead firms responded to the crisis? Have they changed their traditional supply chain strategy and relocated and/or outsourced part of their production? How will those changes affect developing countries? What should be the policy responses to these changes?