Commodity price volatility, fiscal balance and real interest rate
Monoj Kumar Majumder,
Mala Raghavan () and
Joaquin Vespignani
Authors registered in the RePEc Author Service: Monoj Kumar Majumder and
Monoj Kumar Majumder
CAMA Working Papers from Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University
Abstract:
The objective of this study is to explore the impact of commodity price volatility on the governments’ fiscal balance. Using a dynamic panel data model for 108 countries from 1993 to 2018, this study finds that governments’ fiscal balance deteriorates with commodity price volatility. A one standard deviation increase in commodity price volatility leads to a reduction of approximately 0.04 units in the fiscal balance as a percentage of gross domestic product. In addition, we examine the role of real interest rates in influencing the relationship between commodity price volatility and fiscal balance. The empirical results suggest that the negative impact of commodity price volatility on fiscal balance can be mitigated with lower real interest rate.
Keywords: Commodity prices; commodity price volatility; fiscal balance; real interest rate (search for similar items in EconPapers)
JEL-codes: E58 E62 G01 (search for similar items in EconPapers)
Pages: 34 pages
Date: 2020-09
New Economics Papers: this item is included in nep-mac
References: Add references at CitEc
Citations:
Downloads: (external link)
https://cama.crawford.anu.edu.au/sites/default/fil ... avan_vespignani1.pdf (application/pdf)
Related works:
Working Paper: Commodity Price Volatility, Fiscal Balance and Real Interest Rate (2020) 
Working Paper: Commodity price volatility, fiscal balance and real interest rate (2020) 
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:een:camaaa:2020-79
Access Statistics for this paper
More papers in CAMA Working Papers from Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University Contact information at EDIRC.
Bibliographic data for series maintained by Cama Admin ().