Poverty impacts of natural resource revenues

► We analyze the effects on poverty incidence from government expenditures associated with natural resource revenues, using Laos as a case study. ► We use a multi-sector/multi-household general equilibrium model of the Lao economy. ► Our conceptual framework emphasizes the distinction between official and marginal expenditures financed by project revenues. ► We consider a range of assumptions regarding the direct distributional impact of marginal expenditures. ► We find that poverty declines in all cases, but the most important determinant is the degree of rural bias.