Republic of Equatorial Guinea; Selected Issues

This Selected Issues paper discusses fiscal sustainability and capital expenditures for Equatorial Guinea. The paper formulates a permanent income hypothesis model and estimates it using data on oil revenues from Equatorial Guinea. The first methodology is based on a standard permanent income model, using a 50-year time horizon and real rate of return of 2 percent. The paper then extends the model to incorporate a feedback effect from capital spending to non-oil GDP growth, and shows its implications for fiscal sustainability.

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Year of publication:	2009-03-25
Institutions:	International Monetary Fund (IMF) ; International Monetary Fund
Subject:	Economic models \| External sector \| Fiscal sustainability \| Government expenditures \| Incomes policy \| Oil revenues \| Real effective exchange rates \| Selected issues \| capital expenditures \| expenditures \| fiscal policy \| expenditure \| medium-term fiscal framework \| capital expenditure \| fiscal balance \| public expenditure \| government spending \| primary deficit \| public spending \| fiscal framework \| sustainable fiscal policy \| government expenditure \| fiscal consolidation \| expenditure policy \| government expenditure policy \| budget constraint \| public expenditures \| fiscal policies \| fiscal adjustment \| composition of government spending \| reduction in public spending \| taxation \| fiscal strategy \| expenditure composition

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Extent:	application/pdf
Series:	IMF Staff Country Reports.
Type of publication:	Book / Working Paper
Notes:	The text is part of a series IMF Staff Country Reports Number 09/99 3 pages long
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10011242522