Whether fiscal policy is sustainable depends on a government's future revenue and expenditure streams, both of which are highly uncertain. In commodity-rich countries, this problem is intensified by unpredictable and volatile commodity prices. We show how spending rules for oil income and...

This paper explores the conditions under which public spending could minimize violent conflict related to oil wealth. Previous work suggests that oil can lead to violent conflict because it increases the value of the state as a prize or because it undermines the state's bureaucratic penetration....