Designing Oil Revenue Management Mechanisms : An Application to Chad

Oil resources usually play a significant role in oil-rich countries, in gross domestic product and government revenues. High dependence of government revenues on oil can contribute to severe recession following an adverse commodity price shock, suc...

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Main Authors:	Campagne, Benoit, Kitzmuller, Markus, Tordo, Silvana
Format:	Working Paper
Language:	English
Published:	World Bank, Washington, DC 2020
Subjects:	ECONOMIC MODELING FISCAL RULES OIL REVENUE MANAGEMENT OIL PRICE PROCYCLICAL POLICY FISCAL POLICY
Online Access:	http://documents.worldbank.org/curated/en/418491600369375091/Designing-Oil-Revenue-Management-Mechanisms-An-Application-to-Chad http://hdl.handle.net/10986/34500

id	okr-10986-34500
recordtype	oai_dc
spelling	okr-10986-345002022-09-20T00:10:55Z Designing Oil Revenue Management Mechanisms : An Application to Chad Campagne, Benoit Kitzmuller, Markus Tordo, Silvana ECONOMIC MODELING FISCAL RULES OIL REVENUE MANAGEMENT OIL PRICE PROCYCLICAL POLICY FISCAL POLICY Oil resources usually play a significant role in oil-rich countries, in gross domestic product and government revenues. High dependence of government revenues on oil can contribute to severe recession following an adverse commodity price shock, such as in 2014. This paper examines the extent to which a fiscal rule or stabilization fund could translate into a less pro-cyclical fiscal policy, with the government saving part of its oil revenues during periods of high prices and drawing down on the savings during difficult periods. Using the macro-structural model MFMod, the paper presents, evaluates, and discusses the strengths and weaknesses of different oil revenue management mechanisms applied to the specific case of Chad. The scenarios demonstrate that a well-designed management rule can successfully insulate the public budget from the oil price cycle, resulting in a significant reduction in the volatility of the economy. 2020-09-24T18:21:18Z 2020-09-24T18:21:18Z 2020-09 Working Paper http://documents.worldbank.org/curated/en/418491600369375091/Designing-Oil-Revenue-Management-Mechanisms-An-Application-to-Chad http://hdl.handle.net/10986/34500 English Policy Research Working Paper;No. 9402 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Africa Chad
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	ECONOMIC MODELING FISCAL RULES OIL REVENUE MANAGEMENT OIL PRICE PROCYCLICAL POLICY FISCAL POLICY
spellingShingle	ECONOMIC MODELING FISCAL RULES OIL REVENUE MANAGEMENT OIL PRICE PROCYCLICAL POLICY FISCAL POLICY Campagne, Benoit Kitzmuller, Markus Tordo, Silvana Designing Oil Revenue Management Mechanisms : An Application to Chad
geographic_facet	Africa Chad
relation	Policy Research Working Paper;No. 9402
description	Oil resources usually play a significant role in oil-rich countries, in gross domestic product and government revenues. High dependence of government revenues on oil can contribute to severe recession following an adverse commodity price shock, such as in 2014. This paper examines the extent to which a fiscal rule or stabilization fund could translate into a less pro-cyclical fiscal policy, with the government saving part of its oil revenues during periods of high prices and drawing down on the savings during difficult periods. Using the macro-structural model MFMod, the paper presents, evaluates, and discusses the strengths and weaknesses of different oil revenue management mechanisms applied to the specific case of Chad. The scenarios demonstrate that a well-designed management rule can successfully insulate the public budget from the oil price cycle, resulting in a significant reduction in the volatility of the economy.
format	Working Paper
author	Campagne, Benoit Kitzmuller, Markus Tordo, Silvana
author_facet	Campagne, Benoit Kitzmuller, Markus Tordo, Silvana
author_sort	Campagne, Benoit
title	Designing Oil Revenue Management Mechanisms : An Application to Chad
title_short	Designing Oil Revenue Management Mechanisms : An Application to Chad
title_full	Designing Oil Revenue Management Mechanisms : An Application to Chad
title_fullStr	Designing Oil Revenue Management Mechanisms : An Application to Chad
title_full_unstemmed	Designing Oil Revenue Management Mechanisms : An Application to Chad
title_sort	designing oil revenue management mechanisms : an application to chad
publisher	World Bank, Washington, DC
publishDate	2020
url	http://documents.worldbank.org/curated/en/418491600369375091/Designing-Oil-Revenue-Management-Mechanisms-An-Application-to-Chad http://hdl.handle.net/10986/34500
_version_	1764481034207887360

Designing Oil Revenue Management Mechanisms : An Application to Chad

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