Optimal Fiscal Strategy for Oil Exporting Countries (Electronic book text)

Conducting appropriate fiscal policy may be particularly difficult when a large share of government revenue comes selling a government owned exhaustible natural resources such as oil. Large and unpredictable fluctuations in international oil prices may make the determination of appropriate expenditure levels particularly difficult. In addition, since oil wealth is exhaustible, intergenerational equity considerations must also be taken into account. This is the case of the oil exporting countries where most of the government's revenue comes from oil and gas production.