IDEAS home Printed from https://ideas.repec.org/p/prc/dpaper/ks-2017-dp021.html
   My bibliography  Save this paper

Managing Oil Revenue Stabilization Funds: A Framework for Developing Policies

Author

Listed:
  • Nader AlKathiri
  • Frederic Murphy
  • Axel Pierru

    (King Abdullah Petroleum Studies and Research Center)

Abstract

Oil revenue stabilization funds provide short-run protection against oil revenue fluctuations – in the way that Saudi government deposits and reserve at the Saudi Arabian Monetary Authority (SAMA) have historically served as a buffer to decouple government budget from oil revenue fluctuations. By contrast, sovereign wealth funds create income for future generations to replace revenue streams from depletable resources – one of the purposes of Saudi Arabia’s Public Investment Fund. We developed a framework for optimizing policies for adding to and withdrawing from stabilization funds, which we apply to Saudi Arabia as a case study based on publicly available data. The quantitative results are sensitive to the specific assumptions on the likelihood of particular oil prices arising but the overall results are robust to a wide range of assumptions.

Suggested Citation

  • Nader AlKathiri & Frederic Murphy & Axel Pierru, 2017. "Managing Oil Revenue Stabilization Funds: A Framework for Developing Policies," Discussion Papers ks-2017-dp021, King Abdullah Petroleum Studies and Research Center.
  • Handle: RePEc:prc:dpaper:ks-2017-dp021
    as

    Download full text from publisher

    File URL: https://www.kapsarc.org/research/publications/managing-oil-revenue-stabilization-funds-a-framework-for-developing-policies/
    File Function: First version, 2017
    Download Restriction: no
    ---><---

    Other versions of this item:

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:prc:dpaper:ks-2017-dp021. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Michael Gaffney (email available below). General contact details of provider: https://edirc.repec.org/data/kapsasa.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.