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dc.contributor.authorMork, Knut A.
dc.contributor.authorLindset, Snorre
dc.date.accessioned2019-06-07T09:48:49Z
dc.date.available2019-06-07T09:48:49Z
dc.date.created2019-01-15T11:35:15Z
dc.date.issued2019
dc.identifier.citationInternational Journal of Financial Studies. 2019, 7 (1), 1-24.nb_NO
dc.identifier.issn2227-7072
dc.identifier.urihttp://hdl.handle.net/11250/2600313
dc.description.abstractIn an economy with a sovereign wealth fund (SWF), the government may draw on the fund to supplement other government revenues. If the fund is invested in risky assets, this introduces a new stochastic element into the government’s budget. We analyze the interaction between the draw from and risk taking in the SWF. Using non-expected utility preferences, we distinguish between intended changes and stochastic changes in the SWF draws over time. We show that the desire for smoothness in taxes and public services translates into smoothing of SWF draws and lower risk taking. It can even lead to procyclical rebalancing of the SWF portfolio. Future interest rates are associated with interest-rate risk. We show that this risk may lead to a higher optimal equity share in the SWF portfolio. Policy makers can use the draws from the SWF to smooth over time variation in risk-free rates.nb_NO
dc.language.isoengnb_NO
dc.rightsNavngivelse-Ikkekommersiell 4.0 Internasjonal*
dc.rights.urihttp://creativecommons.org/licenses/by-nc/4.0/deed.no*
dc.subjectfiscal policynb_NO
dc.subjectsovereign wealth fundsnb_NO
dc.subjectportfolio choicenb_NO
dc.titleRisk Taking and Fiscal Smoothing with Sovereign Wealth Funds in Advanced Economiesnb_NO
dc.typePeer reviewednb_NO
dc.description.versionpublishedVersionnb_NO
dc.subject.nsiVDP::Social science: 200::Economics: 210nb_NO
dc.source.pagenumber1-24nb_NO
dc.source.volume7nb_NO
dc.source.journalInternational Journal of Financial Studiesnb_NO
dc.source.issue1nb_NO
dc.identifier.doi10.3390/ijfs7010004
dc.identifier.cristin1657018
cristin.unitcode191,15,0,0
cristin.unitnameInstitutt for finans
cristin.ispublishedtrue
cristin.fulltextoriginal


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Navngivelse-Ikkekommersiell 4.0 Internasjonal
Except where otherwise noted, this item's license is described as Navngivelse-Ikkekommersiell 4.0 Internasjonal