UiS Working Papers in Economics and Finance,
University of Stavanger

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  

Download statistics

• University of Stavanger
• Home page for this series

Questions (including download problems) about the papers in this series should be directed to Bernt Arne Odegaard (bernt.a.odegaard@uis.no)
Report other problems with accessing this service to Sune Karlsson (sune.karlsson@oru.se).

RePEc:hhs:stavef:2015_002This page generated on 2024-09-13 22:17:13.