“…Part of the literature has studied this hypothesis with respect to the short-term macroeconomic consequences for taxation, in terms of amount and composition of tax revenues, and public finance management. James (2015) argues that, in response to higher resource revenues, governments decrease non-resource tax rates and increase spending and savings, providing US state-level evidence: a US$1 increase in resource revenues results in a US$0.25 decrease in nonresource revenues, a US$0.43 increase in government spending, and a US$0.32 increase in public savings. Arezki and Brückner (2012) show that resource revenue windfalls have a heterogeneous effect on sovereign bond spreads, reducing the spread in democracies, but increasing it in autocracies.…”