Spending Natural Resource Revenues in an Altruistic Growth Model
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Spending Natural Resource Revenues in an Altruistic Growth Model. / Frederiksen, Elisabeth Hermann.
Cph. : Department of Economics, University of Copenhagen, 2006.Research output: Working paper › Research
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TY - UNPB
T1 - Spending Natural Resource Revenues in an Altruistic Growth Model
AU - Frederiksen, Elisabeth Hermann
N1 - JEL Classification: D64, O41, Q33
PY - 2006
Y1 - 2006
N2 - This paper examines how revenues from a natural resource interact with growth and welfare in an overlapping generations model with altruism. The revenues are allocated between public productive services and direct transfers to members of society by spending policies. We analyze how these policies influence the dynamics, and how the dynamics are influenced by the abundance of the revenue. Abundant revenues may harm growth, but growth and welfare can be oppositely affected. We also provide the socially optimal policy. Overall, the analysis suggests that variation in the strength of altruism and in spending policies may be part of the reason why natural resources seem to affect economic performance across nations differently
AB - This paper examines how revenues from a natural resource interact with growth and welfare in an overlapping generations model with altruism. The revenues are allocated between public productive services and direct transfers to members of society by spending policies. We analyze how these policies influence the dynamics, and how the dynamics are influenced by the abundance of the revenue. Abundant revenues may harm growth, but growth and welfare can be oppositely affected. We also provide the socially optimal policy. Overall, the analysis suggests that variation in the strength of altruism and in spending policies may be part of the reason why natural resources seem to affect economic performance across nations differently
KW - Faculty of Social Sciences
KW - economic growth
KW - welfare
KW - altruism
M3 - Working paper
BT - Spending Natural Resource Revenues in an Altruistic Growth Model
PB - Department of Economics, University of Copenhagen
CY - Cph.
ER -
ID: 327414