Are Diamonds Forever? Using the Permanent Income Hypothesis to Analyze Botswana’s Reliance on Diamond Revenue
Electronic Access:
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Summary:
This study assesses the sustainability of Botswana’s diamond-related fiscal revenue. Diamond reserves are not adequate to generate enough permanent revenue to sustain a high level of expenditure. Under the current fiscal rule that no debt may be accumulated, Botswana will have to save more to avoid an abrupt adjustment in the medium term.
Series:
Working Paper No. 2008/080
Subject:
Expenditure Fiscal consolidation Fiscal rules GDP measurement Personal income
English
Publication Date:
March 1, 2008
ISBN/ISSN:
9781451869415/1018-5941
Stock No:
WPIEA2008080
Pages:
13
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