Calculating Sustainable Non-mineral Balances as Benchmarks for Fiscal Policy

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

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Year of publication:	2008
Authors:	Clausen, Jens R.
Publisher:	Washington : International Monetary Fund
Subject:	Finanzpolitik \| Fiscal policy \| Benchmarking \| Nachhaltigkeit \| Sustainability \| Theorie \| Theory

Extent:	Online-Ressource (17 p)
Series:	IMF Working Papers
Type of publication:	Book / Working Paper
Language:	English
Notes:	Description based upon print version of record Contents; I. Introduction; II. Fiscal Policy in Resource-Rich Countries:; A. International Experience; B. The Permanent Income Hypothesis; C. Mathematical Representation of How to Calculate Benchmarks; III. The Case of Botswana; A. Background; B. Calculating Sustainable Non-mineral Balances for Botswana; Figures; 1 Botswana: Mineral Revenues, Annuity, and Asset Accumulation; Table; 1. Botswana: Fiscal Sustainability Benchmarks; C. Sensitivity Analysis; 2. Botswana: Sensitivity Analysis for Benchmarked Balances; 3. Botswana: Mineral Revenues, Annuity, and Asset Accumulation; IV. Conclusions References
ISBN:	978-1-4518-6977-4 ; 978-1-4519-1431-3 ; 978-1-4518-6977-4
Source:	ECONIS - Online Catalogue of the ZBW

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