Are Developing Countries Better Off Spending Their Oil Wealth Upfront? /

We question the conventional view that it is optimal for government to maintain a stable level of spending out of oil wealth. We compare this conventional policy recommendation with one where government spends all of its oil revenues upfront, at the same rate as oil is extracted. Using a neoclassica...

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Tác giả chính: Takizawa, H.
Tác giả khác: Gardner, E., Ueda, Kenichi
Định dạng: Tạp chí
Ngôn ngữ:English
Được phát hành: Washington, D.C. : International Monetary Fund, 2004.
Loạt:IMF Working Papers; Working Paper ; No. 2004/141
Truy cập trực tuyến:Full text available on IMF
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520 3 |a We question the conventional view that it is optimal for government to maintain a stable level of spending out of oil wealth. We compare this conventional policy recommendation with one where government spends all of its oil revenues upfront, at the same rate as oil is extracted. Using a neoclassical growth model with positive external effects of public spending on consumption and productivity, we find that, if the economy is growing along the steady-state balanced path, the conventional view is validated. However, if the economy starts with a lower capital stock, the welfare ranking across two policies can be reversed. 
538 |a Mode of access: Internet 
700 1 |a Gardner, E. 
700 1 |a Ueda, Kenichi. 
830 0 |a IMF Working Papers; Working Paper ;  |v No. 2004/141 
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