Resource windfalls, optimal public investment and redistribution [[electronic resource] ] : the role of total factor productivity and administrative capacity / / prepared by Rabah Arezki, Arnaud Dupuy and Alan Gelb

• Record Nr.: UNINA9910462252703321
• Autore: Arezki Rabah
• Pubbl/distr/stampa: Washington, D.C., : International Monetary Fund, c2012
• ISBN: 1-4755-8712-0; 1-4755-2152-9
• Descrizione fisica: 1 online resource (35 p.)
• Collana: IMF working paper ; ; 12/200
• Altri autori (Persone): DupuyArnaud; GelbAlan H
• Soggetti: Factors of production - Econometric models; Rate of return; Electronic books.
• Lingua di pubblicazione: Inglese
• Formato: Materiale a stampa
• Livello bibliografico: Monografia
• Note generali: Description based upon print version of record.
• Nota di bibliografia: Includes bibliographical references.
• Nota di contenuto: Cover; Contents; I. Introduction; II. Existing Theoretical Frameworks; III. A Simple Model of Public Investment; A. Model Set-up; B. Discussion of Results; IV. An Extension of The Model with Endogenous Investment in Administrative Capacity; V. Policy implications; References; Appendixes; Appendix 1: Parametric Specification; Appendix 2: Parametric Specification of the Extended Model; Figures; Figure 1. Share of Natural Capital around the World; Figure 2. Public Management Index by Sub-Groups; Figure 3. Investor Protection Index; Figure 4. Non-Resource Sector Total Factor Productivity; Figure 5. Public Investment Management Index and Non-resource Sector Total Factor Figure 6. Resource Windfall, Consumption and Foreign Debt under the Permanent; Figure 7. Evolution of Wages, Resource Windfalls and Sovereign Debt; Figure 8. Evolution of the Stock of Public Capital under Different Scenarios; Figure 9. Evolution of Wages under Different Scenarios; Figure 10. Evolution of Private Consumption under Different Scenarios; Figure 11. Evolution of the Stock of Public Capital under Different Scenarios; Figure 12. Evolution ; of the Stock of Private Capital under Different Scenarios; Figure 13. Private Consumption under Different Scenarios
• Sommario/riassunto: This paper studies the optimal public investment decisions in countries experiencing a resource windfall. To do so, we use an augmented version of the Permanent Income framework with public investment faced with adjustment costs capturing the associated administrative capacity as well as government direct transfers. A key assumption is that those adjustment costs rise with the size of the resource windfall. The main results from the analytical model are threefold. First, a larger resource windfall commands a lower level of public capital but a higher level of redistribution through transfers.