“…2 For example, increased government expenditure volatility can increase private sector uncertainty and, thereby, reduce investment, growth and welfare. Volatility in government revenue that leads to volatile movements in government spending and stop-go pro-cyclical fiscal policies can accentuate economic cycles (Boothe, 1995;Sturm, Gurtner, and Alegre, 2009;Villafuerte and Lopez-Murphy, 2010;Erbil, 2011;Ploeg and Venables, 2012). 3 The rapid expansion of programs and capital spending during revenue booms can raise input prices and stretch the capacity of governments to provide services and monitor spending, leading to waste, inefficiency and the unproductive use of government funds (Barnett and Ossowski, 2002).…”