The paper presents numerical simulations of various fiscal rules for oil-producing countries. Welfare implications are sensitive to the choice of the social welfare function, initial conditions, and non-oil growth prospects. The distribution of non-oil wealth is important for countries with...

This paper examines the implications of habit forming hypothesis for welfare theory. both myopic and rational habit forming models are discussed. First, I analyse the main criteria proposed by myopic habit forming models for measuring individual and social welfare. I show that they are...

Whereas the economics discipline possesses a highly refined theoretical apparatus to analyze the effects of government behaviour on the economy, it has not (yet) managed to fully develop a positively formulated "economic theory of politics" that would permit the integration of the...