Advanced Search
MyIDEAS: Login to save this paper or follow this series

Management of Oil Wealth Under the Permanent Income Hypothesis

Contents:

Author Info

  • Alonso Segura
Registered author(s):

    Abstract

    This paper documents the protracted process of shaping the rules governing oil operations in São Tomé and Príncipe. It analyzes the institutional framework for oil sector development, which applies Milton Friedman''s permanent income hypothesis to the management of oil resources. São Tomé and Príncipe is the first country in Africa to adopt this rule. Finally, the paper offers a preliminary quantitative analysis of the impact of oil sector development on government consumption and savings. It shows that the country''s oil wealth could be significant, which would enable sustainable government consumption and intergenerational equity through a gradual buildup of the Permanent Fund for Future Generations.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.imf.org/external/pubs/cat/longres.aspx?sk=19283
    Download Restriction: no

    Bibliographic Info

    Paper provided by International Monetary Fund in its series IMF Working Papers with number 06/183.

    as in new window
    Length: 34
    Date of creation: 01 Jul 2006
    Date of revision:
    Handle: RePEc:imf:imfwpa:06/183

    Contact details of provider:
    Postal: International Monetary Fund, Washington, DC USA
    Phone: (202) 623-7000
    Fax: (202) 623-4661
    Email:
    Web page: http://www.imf.org/external/pubind.htm
    More information through EDIRC

    Order Information:
    Web: http://www.imf.org/external/pubs/pubs/ord_info.htm

    Related research

    Keywords: Oil revenues; oil resources; oil production; fiscal rules; oil prices; oil sector; fiscal policy; fiscal sustainability; oil exploration; government spending; oil-producing countries; oil companies; fiscal rule; oil reserves; million barrels; oil industry; oil fields; national oil; commercial reserves; oil discoveries; economic studies; sustainable fiscal policy; oil and gas; natural resources; oil & gas; seismic surveys; petroleum exploration; seismic data; annual budget; fiscal stance; public spending; hydrocarbons sector; fiscal policy formulation; mineral reserves; taxation; public budget; fiscal policy rules; oil exporting countries; petroleum sector; fiscal strategy; fiscal years; fiscally sustainable; annual budgets; exploration drilling; oil company; water wells; fiscal impact; government revenue; petroleum company; international oil companies; gas exploration and development; oil markets; fiscal vulnerability; fiscal regime; hydrocarbon exploration; national energy; fiscal sustainability analysis; fiscal performance; fiscal adjustments; fiscal frameworks; government budgets; fiscal deficit; oil field;

    This paper has been announced in the following NEP Reports:

    References

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
    as in new window
    1. Rodrigo O. Valdés & Eduardo Engel, 2000. "Optimal Fiscal Strategy for Oil Exporting Countries," IMF Working Papers, International Monetary Fund 00/118, International Monetary Fund.
    2. H. Takizawa & E. H. Gardner & Kenichi Ueda, 2004. "Are Developing Countries Better off Spending their Oil Wealth Upfront?," IMF Working Papers, International Monetary Fund 04/141, International Monetary Fund.
    3. Luis Serven & César Calderon, 2004. "The Effects of Infrastructure Development on Growth and income," Econometric Society 2004 Latin American Meetings, Econometric Society 173, Econometric Society.
    4. Jan-Peter Olters & Daniel Leigh, 2006. "Natural-Resource Depletion, Habit Formation, and Sustainable Fiscal Policy," IMF Working Papers, International Monetary Fund 06/193, International Monetary Fund.
    5. R. M. Solow, 1973. "Intergenerational Equity and Exhaustable Resources," Working papers, Massachusetts Institute of Technology (MIT), Department of Economics 103, Massachusetts Institute of Technology (MIT), Department of Economics.
    6. International Monetary Fund, 2005. "Trinidad and tobago," IMF Working Papers, International Monetary Fund 05/197, International Monetary Fund.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as in new window

    Cited by:
    1. Wojciech Maliszewski, 2009. "Fiscal Policy Rules for Oil-Producing Countries," IMF Working Papers, International Monetary Fund 09/126, International Monetary Fund.
    2. Jan-Peter Olters & Daniel Leigh, 2006. "Natural-Resource Depletion, Habit Formation, and Sustainable Fiscal Policy," IMF Working Papers, International Monetary Fund 06/193, International Monetary Fund.
    3. Klueh, Ulrich H. & Pastor, Gonzalo & Segura, Alonso, 2009. "Policies to improve the local impact from hydrocarbon extraction: Observations on West Africa and possible lessons for Central Asia," Energy Policy, Elsevier, Elsevier, vol. 37(3), pages 1128-1144, March.
    4. van der Ploeg, Frederick & Venables, Anthony J., 2008. "Harnessing Windfall Revenues in Developing Economies: Sovereign Wealth Funds and Optimal Tradeoffs Between Citizen Dividends, Public Infrastructure and Debt Reduction," CEPR Discussion Papers, C.E.P.R. Discussion Papers 6954, C.E.P.R. Discussion Papers.
    5. Ilkin Sabiroglu & Samad Bashirli & Faiq Qasimli, 2011. "Creating a Favourable Deployment Mechanism of Oil and Gas Revenues with Regard to Volatile Oil Prices: The Case of Azerbaijan," Transition Studies Review, Springer, Springer, vol. 18(1), pages 179-199, September.
    6. Eduardo Engel & Christopher Neilson & Rodrigo Valdés, 2011. "Chile’s Fiscal Rule as Social Insurance," Working Papers Central Bank of Chile, Central Bank of Chile 627, Central Bank of Chile.
    7. Jan-Peter Olters, 2007. "Old Curses, New Approaches? Fiscal Benchmarks for Oil-Producing Countries in Sub-Saharan Africa," IMF Working Papers, International Monetary Fund 07/107, International Monetary Fund.
    8. Stéphane Carcillo & Mauricio Villafuerte & Daniel Leigh, 2007. "Catch-Up Growth, Habits, Oil Depletion, and Fiscal Policy," IMF Working Papers, International Monetary Fund 07/80, International Monetary Fund.
    9. Alun H. Thomas & Jun Il Kim & Aqib Aslam, 2008. "Equilibrium Non-Oil Current Account Assessments for Oil Producing Countries," IMF Working Papers, International Monetary Fund 08/198, International Monetary Fund.
    10. Alun H. Thomas & Tamim Bayoumi, 2009. "Today Versus tomorrow," IMF Working Papers, International Monetary Fund 09/248, International Monetary Fund.
    11. Alonso Segura & Walter Zarate & Gonzalo C. Pastor & Ulrich H. Klueh, 2007. "Inter-Sectoral Linkages and Local Content in Extractive Industries and Beyond," IMF Working Papers, International Monetary Fund 07/213, International Monetary Fund.
    12. Yelena, Kalyuzhnova, 2011. "The National Fund of the Republic of Kazakhstan (NFRK): From accumulation to stress-test to global future," Energy Policy, Elsevier, Elsevier, vol. 39(10), pages 6650-6657, October.

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:imf:imfwpa:06/183. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jim Beardow) or (Hassan Zaidi).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.