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 -