Title Nonrenewable resources : a case for persistent fiscal surpluses / prepared by Max Alier and Martin Kaufman

Published [Washington, D.C.] : International Monetary Fund, Western Hemisphere Department, ©1999

Click on the following:
IMF eLibrary

Copies

Description 1 online resource (29 pages) : illustrations Series IMF working paper, 2227-8885 ; WP/99/44 IMF working paper ; WP/99/44. Summary The purpose of this paper is to examine, in a stylized theoretical framework, whether the presence of sizable exhaustible resources in an economy affects the path of optimal primary fiscal balances. More specifically, could the existence of nonrenewable resources create a case for transitory but persistent fiscal surpluses? We found that for economies heavily endowed with nonrenewable resources, like Chile, that is generally the case. During the time when fiscal revenues are derived from an exhaustible resource, the government would run fiscal surpluses which would permit the replacement of nonfinancial wealth with financial assets. The return on those financial assets would be used to increase public consumption possibilities of future generations for a constant tax burden per capita over time. Government preferences regarding the welfare of different generations and the size of the finite resource determine the size of the initial surpluses and, for a steady tax burden over time, also the path for government expenditures Bibliography Includes bibliographical references (pages 28-29) Notes Master and use copy. Digital master created according to Benchmark for Faithful Digital Reproductions of Monographs and Serials, Version 1. Digital Library Federation, December 2002. http://purl.oclc.org/DLF/benchrepro0212 MiAaHDL English digitized 2010 HathiTrust Digital Library committed to preserve pda MiAaHDL Print version record Subject Fiscal policy -- Chile Nonrenewable natural resources -- Chile Copper industry and trade -- Chile Revenue -- Chile Government spending policy -- Chile Budget deficits -- Chile Budget deficits Copper industry and trade Fiscal policy Government spending policy Nonrenewable natural resources Revenue Chile Form Electronic book Author Kaufman, Martin Daniel, 1965- International Monetary Fund. Western Hemisphere Department. ISBN 145189354X 9781451893540 1281386502 9781281386502 1462389392 9781462389391 1452713960 9781452713960 9786613779786 6613779784 9781451846393 1451846398

  Permalink