Hidden Bibliographic Details
| Varying Form of Title: | At head of title: Fiscal Affairs Department and Middle East and Central Asia Department
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| Other authors / contributors: | Hasanov, Fuad, 1978- author.
International Monetary Fund. Fiscal Affairs Department, issuing body.
International Monetary Fund. Middle East and Central Asia Department, issuing body.
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| ISBN: | 9781463991586
1463991584
9781475502459
1475502451
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| Notes: | Title from PDF title page (IMF Web site, viewed January 10, 2012).
"January 2012."
Available in PDF, ePUB, and Mobi formats on the Internet.
Includes bibliographical references (pages 19-20).
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| Summary: | Policymakers in oil-exporting countries confront the question of how to allocate oil revenues among consumption, saving, and investment in the face of high income volatility. We study this allocation problem in a precautionary saving and investment model under uncertainty. Consistent with data in the 2000's, precautionary saving is sizable and the marginal propensity to consume out of permanent shocks is below one, in stark contrast to the predictions of the perfect foresight model. The optimal investment rate is high if productivity in the tradable sector is high enough.
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| Standard no.: | 10.5089/9781463991586.001
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