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dc.titleReverse Causality between Oil Policy and Fiscal Policy?: The Venezuelan Experience
dc.contributor.authorManzano, Osmel
dc.contributor.authorSaboin, José Luis
dc.contributor.orgunitCountry Department Andean Group
dc.coverageVenezuela
dc.date.available2021-05-25T00:00:00
dc.date.issue2021-05-25T00:00:00
dc.description.abstractThis paper uses a model of intergenerational accounting to simulate the intergenerational distribution of oil wealth in Venezuela. Venezuelan oil production does not seem to follow an optimal extraction path. Nevertheless, this is true if we do not consider what the government does with the resources received from the oil sector. In this paper we explored the interaction of oil policy and fiscal policy using an intergeneration accounting model. We found that these interactions could explain certain outcomes. In particular, the model could explain why the sector was open for investment in 1991 and then “re-nationalized” in 2001. Results suggest that when fiscal policy could leave an important burden to future generations, voters seem to favor a more tax oriented oil policy, leaving the oil in the subsoil.
dc.format.extent40
dc.identifier.doihttp://dx.doi.org/10.18235/0003290
dc.identifier.urlhttps://publications.iadb.org/publications/english/document/Reverse-Causality-between-Oil-Policy-and-Fiscal-Policy-The-Venezuelan-Experience.pdf
dc.language.isoen
dc.mediumAdobe PDF
dc.publisherInter-American Development Bank
dc.subjectFiscal Policy
dc.subjectTaxation
dc.subjectPublic Expenditure
dc.subjectOil Production
dc.subjectOil Policy
dc.subjectPetroleum Industry
dc.subject.jelcodeE22 - Investment • Capital • Intangible Capital • Capacity
dc.subject.jelcodeO13 - Agriculture • Natural Resources • Energy • Environment • Other Primary Products
dc.subject.jelcodeE62 - Fiscal Policy
dc.subject.jelcodeE24 - Employment • Unemployment • Wages • Intergenerational Income Distribution • Aggregate Human Capital • Aggregate Labor Productivity
dc.subject.jelcodeE32 - Business Fluctuations • Cycles
dc.subject.jelcodeN16 - Latin America • Caribbean
dc.subject.jelcodeH50 - National Government Expenditures and Related Policies: General
dc.subject.jelcodeH21 - Efficiency • Optimal Taxation
dc.subject.jelcodeN56 - Latin America • Caribbean
dc.subject.jelcodeL71 - Mining, Extraction, and Refining: Hydrocarbon Fuels
dc.subject.jelcodeQ38 - Government Policy
dc.subject.jelcodeE21 - Consumption • Saving • Wealth
dc.subject.jelcodeE65 - Studies of Particular Policy Episodes
dc.subject.jelcodeH13 - Economics of Eminent Domain • Expropriation • Nationalization
dc.subject.jelcodeP16 - Political Economy
dc.subject.keywordsFiscal policy;Venezuela;Oil policy;Intergenerational accounting;Fiscal voracity;Oil expropriation cycles
dc.typeWorking Papers
idb.identifier.pubnumberIDB-WP-01227
idb.operationRG-T3717
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