Scandinavian Working Papers in Economics

UiS Working Papers in Economics and Finance,
University of Stavanger

No 2015/2: Resource revenue management and wealth neutrality

Klaus Mohn ()
Additional contact information
Klaus Mohn: UiS, Postal: University of Stavanger, NO-4036 Stavanger, Norway

Abstract: An important idea behind the Norwegian oil fund mechanism and the fiscal spending rule is to protect the non-oil economy from the adverse effects of excessive spending of resource revenues over the Government budget. A critical assumption in this respect is that public sector saving is not being offset by private sector dis-saving, which is at stake with the hypothesis of Ricardian equivalence. Based on a framework of co-integrating saving rates, this model provides an empirical test of the Ricardian equivalence hypothesis on Norwegian time series data. Although the model rejects the strong-form presence of Ricardian equivalence, results indicate that the Norwegian approach does not fully succeed in separating spending of resource revenues from the accrual of the same revenues.

Keywords: Resource wealth; saving; fiscal policy

JEL-codes: D91; E21; E61; Q33

15 pages, January 22, 2015

Full text files

uis_wps_2015_02_mohn.pdf PDF-file 

Download statistics

Questions (including download problems) about the papers in this series should be directed to Bernt Arne Odegaard ()
Report other problems with accessing this service to Sune Karlsson ().

This page generated on 2024-02-05 17:13:43.