Calculating Sustainable Non-mineral Balances as Benchmarks for Fiscal Policy; The Case of Botswana
Assuming a social welfare function that smoothes expenditure, this paper calculates a sustainability benchmark for the non-mineral balance in Botswana that is based on a notion of a "permanent income" from non-renewable resources. It is derived by constructing a hypothetical annuity from revenues from these resources, which is held constant in terms of GDP. Botswana is an interesting case because current projections suggest that diamond resources could be largely exhausted within a generation.
|Date of creation:||01 May 2008|
|Date of revision:|
|Contact details of provider:|| Postal: International Monetary Fund, Washington, DC USA|
Phone: (202) 623-7000
Fax: (202) 623-4661
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|
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.:
- StÃ©phane Carcillo & Mauricio Villafuerte & Daniel Leigh, 2007. "Catch-Up Growth, Habits, Oil Depletion, and Fiscal Policy; Lessons from the Republic of Congo," IMF Working Papers 07/80, International Monetary Fund.
- Michael Kumhof & Douglas Laxton, 2009. "Chileâ€™s Structural Fiscal Surplus Rule; A Model-Based Evaluation," IMF Working Papers 09/88, International Monetary Fund.
- Daniel Leigh & Etibar Jafarov, 2007. "Alternative Fiscal Rules for Norway," IMF Working Papers 07/241, International Monetary Fund.
- Jan-Peter Olters, 2007. "Old Curses, New Approaches? Fiscal Benchmarks for Oil-Producing Countries in Sub-Saharan Africa," IMF Working Papers 07/107, International Monetary Fund.
- H. Takizawa & E. H. Gardner & Kenichi Ueda, 2004. "Are Developing Countries Better Off Spending Their Oil Wealth Upfront?," IMF Working Papers 04/141, International Monetary Fund.
- International Monetary Fund, 2007. "Chile; 2007 Article IV Consultation: Staff Report; Public Information Notice on the Executive Board Discussion; and Statement by the Executive Director for Chile," IMF Staff Country Reports 07/333, International Monetary Fund.
- Corinne DelÃ©chat & Matthew Gaertner, 2008. "Exchange Rate Assessment in a Resource-Dependent Economy; The Case of Botswana," IMF Working Papers 08/83, International Monetary Fund.
When requesting a correction, please mention this item's handle: RePEc:imf:imfwpa:08/117. 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 references are entirely missing, you can add them using this form.