Front Matter Page
IMF Country Report No. 15/250
NORWAY
SELECTED ISSUES
September 2015
This Selected Issues paper on Norway was prepared by a staff team of the International Monetary Fund as background documentation for the periodic consultation with the member country. It is based on the information available at the time it was completed on July 30, 2015.
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Front Matter Page
NORWAY
SELECTED ISSUES
July 30, 2015
Approved By Philip Gerson
Prepared By Tom Dorsey, Giang Ho, and Kazuko Shirono.
Contents
NORWAY’S ECONOMY WITH A MATURING OIL AND GAS INDUSTRY
A. The Direct Contribution of Oil and Gas to the Norwegian Economy
B. The Fiscal Contribution of Oil and Gas to the Mainland Economy: The Fiscal Rule and the Sovereign Wealth Fund
C. Real Sector Links Between the Offshore and Mainland Economies
D. Policies for Norway’s Future
BOXES
1. Measuring Oil and Gas Sector Demand in Mainland Economy
2. Investment and Production in Norwegian Fields
3. What Determines Oil Investment and Output?
FIGURE
1. Oil and Gas Related Incomes, 2014
REFERENCES
THE HOUSING BOOM AND HOUSEHOLD DEBT IN NORWAY
A. House Prices and Household Debt
B. Institutional Factors Behind the Housing Boom and Household Indebtedness
C. Household Vulnerability
D. Macroeconomic Impact of a House Price Correction
E. Conclusion
BOX
1. Sensitivity Analysis
FIGURE
1. House Prices and Household Balance Sheets
REFERENCES
THE NORWEGIAN LABOR MARKET AND MIGRATION
A. Labor Market Institutions in Norway
B. Perspectives on Immigration in Norway
C. Conclusion
FIGURES
1. Labor Market Institutions
2. Labor Market Outcomes
3. Disability Benefit and Sickness Leaves
4. Characteristics of Immigration to Norway
TABLES
1. Drivers of Net Migration Flows to Nordic Countries
2. Explaining Foreign-Native Unemployment Gaps
REFERENCES
EXCHANGE RATE PASS-THROUGH AND INFLATION DYNAMICS IN NORWAY
A. Exchange Rate Pass-Through
B. A Model for Forecasting Inflation
FIGURES
1. Estimated Price Responses to An Exchange Rate Shock
2. Forecast Evaluation
TABLE
1. A Phillips Curve Model of Inflation
REFERENCES