| dc.description.abstract | In this thesis we investigate two matters concerning Norwegian scal policy.
We rst assess the e ects of an oil revenue shock on mainland GDP and scal
spending. Then we examine how discretionary scal spending a ects mainland
GDP. This is done through an empirical SVAR analysis. Acknowledging that
the e ects of scal policy depends on country characteristics, our SVAR model
is built to t Norway, a small open and oil dependent economy with a unique
scal framework. Our results make it clear that mainland GDP increases
following a hike in government oil revenue and that scal spending has been
more procyclical to oil revenue in our later sample, i.e., after the adoption
of the scal spending rule. We show that discretionary scal spending has
a positive, yet modest, short term e ect on Norwegian GDP. The results are
robust for di erent speci cations of our SVAR model, as well as a proxy SVAR. | nb_NO |
