Public Budget in Resource-Rich Economies

Seminar paper from the year 2012 in the subject Economics - Finance grade: 13 Frankfurt School of Finance & Management course: Public Finance - Finanzwissenschaften language: English abstract: The objective of this paper is to examine how public expenditures revenue and debt in resource-rich economies changed in the past how politicians and bureaucrats respond(ed) to resource abundance and how an optimal budget rule for resource-rich economies should be designed. The paper follows a non-technical approach and comes to the conclusion that the successful management of resource revenues highly depends on the political situation in an economy as this determines how well it sticks to any budget rule. The budget rule presented in section IV approaches the different parameters which are at play and shows challenges regarding the rule's practical feasibility.