01950cas a2200253 a 4500 AALejournalIMF001278 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451854077 1018-5941 BD-DhAAL BD-DhAAL Valdes, Rodrigo. Optimal Fiscal Strategy for Oil Exporting Countries / Rodrigo Valdes, Eduardo Engel. Washington, D.C. : International Monetary Fund, 2000. 1 online resource (71 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper develops simple guidelines for fiscal policy in oil producing countries, focusing on three issues: intergenerational oil distribution, precautionary saving, and adjustment costs. The paper presents a framework to analyze how the revenue generated by an exhaustible source of wealth that belongs to the government should be distributed between current and future generations. This framework is used to show the strengths and limitations of existing answers, which motivates a new approach for dealing with this question. The paper derives simple, closed form approximations to the optimal level of government expenditure when an important part of government revenue is generated by an uncertain and exhaustible natural resource such as oil. Price uncertainty, budget uncertainty, and the (possibly asymmetric) costs of adjusting expenditure levels are considered. Mode of access: Internet Engel, Eduardo. IMF Working Papers; Working Paper ; No. 2000/118 Full text available on IMF http://elibrary.imf.org/view/journals/001/2000/118/001.2000.issue-118-en.xml IMF e-Library