Series: IMF Working Papers
Author(s): Jan-Peter Olters , and Daniel Leigh
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 01 August 2006
Keywords: Sustainable fiscal policy, habit formation, permanent-income hypothesis, primary deficit, oil production, government spending, oil reserves, Macroeconomic - Aspects Of Public Finance, Macroeconomic Policy, And General Outlook
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 pa...