How much is enough? : Monte Carlo simulations of an oil stabilization fund for Nigeria /

How much is enough? : Monte Carlo simulations of an oil stabilization fund for Nigeria /

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Bibliographic Details
Author / Creator:	Bartsch, Ulrich, author.
Imprint:	[Washington, D.C.] : International Monetary Fund, 2006.
Description:	1 online resource (17 pages).
Language:	English
Series:	IMF working paper ; WP/06/142 IMF working paper ; WP/06/142.
Subject:	Petroleum products -- Prices -- Nigeria. Petroleum industry and trade -- Nigeria -- Finance. Produits pétroliers -- Prix -- Nigeria. Politique fiscale -- Nigeria. Ajustement structurel (Économie) -- Nigeria. Pétrole -- Industrie et commerce -- Nigeria. Petroleum industry and trade -- Finance. Petroleum products -- Prices. Nigeria. Electronic books. Electronic books.
Format:	E-Resource Book
URL for this record:	http://pi.lib.uchicago.edu/1001/cat/bib/12498598

Hidden Bibliographic Details
ISBN:	1283517205 9781283517201 9781452701400 1452701407 1462353843 9781462353842 1452716846 9781452716848 9786613829658 661382965X
ISSN:	2227-8885
Digital file characteristics:	data file
Notes:	Includes bibliographical references. Restrictions unspecified Electronic reproduction. [S.l.] : HathiTrust Digital Library, 2010. Master and use copy. Digital master created according to Benchmark for Faithful Digital Reproductions of Monographs and Serials, Version 1. Digital Library Federation, December 2002. http://purl.oclc.org/DLF/benchrepro0212 English. digitized 2010 HathiTrust Digital Library committed to preserve Print version record.
Summary:	In oil-dependent countries, a major issue is how to stabilize fiscal spending when government revenue fluctuates along with the international price of oil. A stabilization fund would allow the government to pull through an oil price trough and absorb windfall revenue when prices are high. This paper focuses on two key issues. First, the paper proposes to base government spending on moving averages of past oil prices that are shown to behave nearly as a random walk. Second, it uses Monte Carlo simulations of a fiscal policy model to look at the probability that a given level of assets in the stabilization fund is exhausted over a certain number of years. The simulations show that with a fiscal policy based on moving averages over three to five years, a stabilization fund of about 75 percent of 2004 oil revenue would be adequate, which, in Nigeria, would equate to US$16-18 billion.
Other form:	Print version: Bartsch, Ulrich. How much is enough?. Washington, D.C. : International Monetary Fund, African Dept., ©2006
Standard no.:	10.5089/9781452701400.001

Table of Contents:

""Contents""; ""I. AN OIL STABILIZATION FUND FOR NIGERIA""; ""A. Introduction and Overview""; ""B. Views in the Literature""; ""C. Stabilizing Fiscal Spending""; ""D. Model Description""; ""E. Application to Nigeria""; ""References""