Description |
1 online resource (29 pages) : illustrations |
Series |
IMF working paper, 2227-8885 ; WP/99/44 |
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IMF working paper ; WP/99/44.
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Summary |
The purpose of this paper is to examine, in a stylized theoretical framework, whether the presence of sizable exhaustible resources in an economy affects the path of optimal primary fiscal balances. More specifically, could the existence of nonrenewable resources create a case for transitory but persistent fiscal surpluses? We found that for economies heavily endowed with nonrenewable resources, like Chile, that is generally the case. During the time when fiscal revenues are derived from an exhaustible resource, the government would run fiscal surpluses which would permit the replacement of nonfinancial wealth with financial assets. The return on those financial assets would be used to increase public consumption possibilities of future generations for a constant tax burden per capita over time. Government preferences regarding the welfare of different generations and the size of the finite resource determine the size of the initial surpluses and, for a steady tax burden over time, also the path for government expenditures |
Bibliography |
Includes bibliographical references (pages 28-29) |
Notes |
Master and use copy. Digital master created according to Benchmark for Faithful Digital Reproductions of Monographs and Serials, Version 1. Digital Library Federation, December 2002. http://purl.oclc.org/DLF/benchrepro0212 MiAaHDL |
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English |
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digitized 2010 HathiTrust Digital Library committed to preserve pda MiAaHDL |
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Print version record |
Subject |
Fiscal policy -- Chile
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Nonrenewable natural resources -- Chile
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Copper industry and trade -- Chile
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Revenue -- Chile
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Government spending policy -- Chile
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Budget deficits -- Chile
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Budget deficits
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Copper industry and trade
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Fiscal policy
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Government spending policy
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Nonrenewable natural resources
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Revenue
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Chile
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Form |
Electronic book
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Author |
Kaufman, Martin Daniel, 1965-
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International Monetary Fund. Western Hemisphere Department.
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ISBN |
145189354X |
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9781451893540 |
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1281386502 |
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9781281386502 |
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1462389392 |
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9781462389391 |
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1452713960 |
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9781452713960 |
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9786613779786 |
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6613779784 |
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9781451846393 |
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1451846398 |
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