Abstract
This paper studies optimal mechanisms of intergenerational fair distribution of oil and gas revenues in terms of oil price shocks in the case of Azerbaijan. In order to determine optimal utilization mechanism of oil and gas revenues the following models: real constant expenditure (permanent income hypothesis), nominal constant expenditure, stable diminishing expenditure and stable rate diminishing expenditure, were tested on the basis of three alternative oil and gas export prices. Finally the research suggests the statistical method to calculate crude oil reference price for the midterm fiscal planning and the flexible mechanism which can be revised with regard to oil price uncertainty.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.