07764oam 22014654 450 991078648290332120230801225347.01-4755-8712-01-4755-2152-9(CKB)2670000000278866(EBL)1606931(SSID)ssj0000941772(PQKBManifestationID)11585684(PQKBTitleCode)TC0000941772(PQKBWorkID)10971663(PQKB)11443078(MiAaPQ)EBC1606931(Au-PeEL)EBL1606931(CaPaEBR)ebr10627087(OCoLC)870244991(IMF)WPIEE2012200(IMF)WPIEA2012200(EXLCZ)99267000000027886620020129d2012 uf 0engurcn|||||||||txtccrResource Windfalls, Optimal Public Investment and Redistribution : The Role of Total Factor Productivity and Administrative Capacity /Alan Gelb, Arnaud Dupuy, Rabah ArezkiWashington, D.C. :International Monetary Fund,2012.1 online resource (35 p.)IMF Working PapersDescription based upon print version of record.1-4755-9106-3 1-4755-0550-7 Includes bibliographical references.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 ProductivityFigure 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 ScenariosFigure 13. Private Consumption under Different ScenariosThis 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. Second, weaker administrative capacity lowers the increase in optimal public capital following a resource windfall. Third, higher total factor productivity in the non-resource sector reduces the degree of des-investment in public capital commanded by weaker administrative capacity. We further extend our basic model to allow for "investing in investing" - that is public investment in administrative capacity - by endogenizing the adjustment cost in public investment. Results from the numerical simulations suggest, among other things, that a higher initial stock of public administrative "know how" leads to a higher level of optimal public investment following a resource windfall. Implications for policy are discussed.IMF Working Papers; Working Paper ;No. 2012/200Factors of productionEconometric modelsRate of returnInvestments: StocksimfPublic FinanceimfProduction and Operations ManagementimfNatural ResourcesimfMacroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook: GeneralimfInternational Lending and Debt ProblemsimfEfficiencyimfOptimal TaxationimfNational Government Expenditures and Related Policies: InfrastructuresimfOther Public Investment and Capital StockimfAgricultural and Natural Resource EconomicsimfEnvironmental and Ecological Economics: GeneralimfProductionimfCostimfCapital and Total Factor ProductivityimfCapacityimfPension FundsimfNon-bank Financial InstitutionsimfFinancial InstrumentsimfInstitutional InvestorsimfPublic finance & taxationimfEnvironmental managementimfMacroeconomicsimfInvestment & securitiesimfPublic investment spendingimfPublic investment and public-private partnerships (PPP)imfNatural resourcesimfTotal factor productivityimfStocksimfExpenditureimfEnvironmentimfFinancial institutionsimfPublic investmentsimfPublic-private sector cooperationimfIndustrial productivityimfUnited StatesimfFactors of productionEconometric models.Rate of return.Investments: StocksPublic FinanceProduction and Operations ManagementNatural ResourcesMacroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook: GeneralInternational Lending and Debt ProblemsEfficiencyOptimal TaxationNational Government Expenditures and Related Policies: InfrastructuresOther Public Investment and Capital StockAgricultural and Natural Resource EconomicsEnvironmental and Ecological Economics: GeneralProductionCostCapital and Total Factor ProductivityCapacityPension FundsNon-bank Financial InstitutionsFinancial InstrumentsInstitutional InvestorsPublic finance & taxationEnvironmental managementMacroeconomicsInvestment & securitiesPublic investment spendingPublic investment and public-private partnerships (PPP)Natural resourcesTotal factor productivityStocksExpenditureEnvironmentFinancial institutionsPublic investmentsPublic-private sector cooperationIndustrial productivityGelb Alan1578641Dupuy Arnaud1578642Arezki Rabah1472682DcWaIMFBOOK9910786482903321Resource Windfalls, Optimal Public Investment and Redistribution3858216UNINA