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From Volatility to Stability in Expenditure :, Stabilization Funds in Resource-Rich Countries, Naotaka Sugawara

Abstract
This paper examines the effect of stabilization funds on the volatility of government expenditure in resource-rich countries. Using a panel data set of 68 resource-rich countries over 1988–2012, the results find that the existence of stabilization funds contributes to smoothing government expenditure. The spending volatility in countries that have established such funds is found to be 13 percent lower in the main estimation, and similar impacts are found in robustness tests. The analysis also shows that political institutions and fiscal rules are significant factors in reducing the expenditure volatility, while highlighting the roles of the size of economy, diversified exports, real sector management, and financial markets
Table Of Contents
Cover; Table of Contents; I. Introduction; II. Literature Review; III. Estimation Strategy; A. Empirical Model; B. Data; IV. Results; V. Sensitivity Analysis; A. Alternative Volatility Measures; B. Different Institutional Indicators and Fiscal Rules; C. Restriction of Sample Countries; D. Fixed-Effects vs Random-Effects Models; E. Difference-in-Differences Estimation; Use of Panel Data; Two-Period Data; VI. Concluding Remarks; References; Appendix 1: List of sample countries; Appendix 2: List of stabilization funds; Appendix 3: Definitions and sources of variables
Language
eng
Literary Form
non fiction
Note
Description based upon print version of record
Physical Description
1 online resource (50 p.)
Specific Material Designation
remote
Form Of Item
online
Isbn
9781475527650

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