The measurement of budgetary operations in highly distorted economies: the case of Angola

Carlos Elbirt

No 497, Policy Research Working Paper Series from The World Bank

Abstract: In a highly distorted economy such as Angola's, budget accounts can be misleading - because prices in the parallel market, including the exchange rate, represent up to 100 times official prices. Parallel prices are the real opportunity costs for consumers and guide them in their decisions. The government collects its taxes and pays its expenses in two currencies: Kwanzas that have attached buying rights, such as access to hard currencies or goods, and Kwanzas which have to be used in the parallel market. This paper also discusses the impact policy adjustment would have on the budget deficit.

Keywords: Environmental Economics&Policies; Economic Theory&Research; Economic Stabilization; Public Sector Economics&Finance; Markets and Market Access (search for similar items in EconPapers)
Date: 1990-08-31
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www-wds.worldbank.org/external/default/WDSC ... d/PDF/multi_page.pdf (application/pdf)

Related works:
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:wbk:wbrwps:497

Access Statistics for this paper

More papers in Policy Research Working Paper Series from The World Bank 1818 H Street, N.W., Washington, DC 20433. Contact information at EDIRC.
Bibliographic data for series maintained by Roula I. Yazigi ().