SELECTED OIL-PRODUCING ECONOMIES

The book probes into the complex aspects of macroeconomics focusing on the application of fiscal policies in oil-producing economies. In these economies a major concern is stabilization and how governments can effectively manage their economies especially during difficult times. These economies encounter distinctive challenges due to their reliance on revenue from oil sales. Regrettably many of them struggle with underdeveloped tax collection systems worsened by weak alternative revenue sources stemming from a significant presence of the informal economy. The book first investigates this issue by documenting the business cycle facts in selected oil-producing economies. While documenting the stylized facts of the business cycle I encountered some puzzling results. These results can be attributed to the persistent presence of the informal sector. In response to this gap I adopt a novel approach using the Multiple Indicators Multiple Causes (MIMIC) approach to estimate Nigeria's informal sector's size and evolution. I posit that insights into the characteristics of short-run macroeconomic variations are a crucial first step in formulating appropriate stabilization policies.