Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/201682 
Year of Publication: 
2017
Series/Report no.: 
Graduate Institute of International and Development Studies Working Paper No. HEIDWP22-2017
Publisher: 
Graduate Institute of International and Development Studies, Geneva
Abstract: 
In this paper we empirically examined the role of fiscal rules in mitigating the impact of oil market fluctuations in resource-rich economies using a structural panel VAR framework following P. Pedroni (2013) and incorporating identification scheme of Kilian (2009). Our key findings can be summarized as: l) oil exporting developing countries exhibit procyclical respond to positive oil market specific demand shock, 2) there are significant crosscountry differences in the way governments respond to the oil market shocks, 3) fiscal rules mitigate the shocks and generate fiscal discipline only if when all fiscal rules are imposed simultaneously, 4) we couldn't identify any significant role of wealth funds as a budget stabilization policy.
Subjects: 
fiscal rule
structural panel VAR
oil shocks
JEL: 
C12
C22
C23
E62
Document Type: 
Working Paper

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