The value of fiscal discipline for oil-exporting countries

► World oil prices affect fiscal revenue in oil-exporting small open economies (SOEs). ► In this context, I use a DSGE model to assess the value of fiscal discipline. ► Fiscal policy is a key propagation channel of oil price shocks in oil-exporting SOEs. ► Fiscal policy seems capable of regulating the size of pass-through. ► Insulating fiscal policies seem to be welfare improving over procyclical ones.