07479oam 22014894 450 991096137030332120251116180212.0978147556996414755699639781475549829147554982297812839478931283947897(CKB)2550000001003754(EBL)1607066(SSID)ssj0000948595(PQKBManifestationID)11484550(PQKBTitleCode)TC0000948595(PQKBWorkID)10950157(PQKB)10347270(Au-PeEL)EBL1607066(CaPaEBR)ebr10644326(CaONFJC)MIL426039(OCoLC)819355356(IMF)WPIEE2012274(IMF)WPIEA2012274(MiAaPQ)EBC1607066WPIEA2012274(EXLCZ)99255000000100375420020129d2012 uf 0engurcn|||||||||txtccrPublic Investment in Resource-Abundant Developing Countries /Andrew Berg, Rafael Portillo, Susan Yang, Luis-Felipe Zanna1st ed.Washington, D.C. :International Monetary Fund,2012.1 online resource (49 p.)IMF Working PapersIMF working paper ;WP/12/274"November 2012" -- verso of t.p.At head of title: Research Department -- verso of t.p.9781475570519 1475570511 9781475535563 1475535562 Includes bibliographical references (p. 42-47).Cover; Contents; I. Introduction; II. Model Setup; A Households; B Firms; C The Government; D Some Market Clearing Conditions and Identities; III. Equilibrium and Calibration; A The CEMAC Region; B Angola; IV. Investing with a short revenue horizon; A Saving in a SWF vs. Investing in Public Capital; B Sustaining Public Capital; C Endogenous Depreciation of Public Capital; D The Sustainable Investing Approach; E Development without the Windfall; V. Investing Volatile Resource Revenue; A The Sustainable Investing Approach to Managing VolatilityB Allocation between Investing and External SavingVI. Conclusion; Tables; 1 Baseline Parameter Calibration; 2 Welfare Comparison with All-Investing; 3 Stabilization Effects of the Sustainable Investing Approach; Figures; 1 CEMAC application: saving in a SWF vs. all-investing; 2 CEMAC application: all-investing and sustaining public capital by fiscal Adjustments through consumption taxes or transfers; 3 CEMAC application with constant depreciation rate of public capital: Saving in a SWF vs. all-investing; 4 CEMAC application: sustainable investing approach5 CEMAC application: investing without a Resource Windfall 6 Angola application: conservative vs. aggressive scaling-up under sustainable investing; 7 Angola application: conservative vs. aggressive scaling-up With constant depreciation rate; Appendix I: Equilibrium and Optimality Conditions; ReferencesNatural resource revenues provide a valuable source to finance public investment in developing countries, which frequently face borrowing constraints and tax revenue mobilization problems. This paper develops a dynamic stochastic small open economy model to analyze the macroeconomic effects of investing natural resource revenues, making explicit the role of pervasive features in these countries including public investment inefficiency, absorptive capacity constraints, Dutch disease, and financing needs to sustain capital. Revenue exhaustibility raises medium-term issues of how to sustain capital built during a windfall, while revenue volatility raises short-term concerns about macroeconomic instability. Using the model, country applications show how combining public investment with a resource fund---a sustainable investing approach---can help address the macroeconomic problems associated with both exhaustibility and volatility. The applications also demonstrate how the model can be used to determine the appropriate magnitude of the investment scaling-up (accounting for the financing needs to sustain capital) and the adequate size of a stabilization fund (buffer).IMF Working Papers; Working Paper ;No. 2012/274Public investmentsDeveloping countriesFinanceEconometric modelsNatural resourcesDeveloping countriesMacroeconomicsimfPublic FinanceimfTaxationimfExhaustible Resources and Economic DevelopmentimfInvestmentimfCapitalimfIntangible CapitalimfCapacityimfEconomic Growth of Open EconomiesimfOne, Two, and Multisector Growth ModelsimfNational Government Expenditures and Related Policies: InfrastructuresimfOther Public Investment and Capital StockimfMacroeconomics: ConsumptionimfSavingimfWealthimfBusiness Taxes and SubsidiesimfNational Government Expenditures and Related Policies: GeneralimfPublic finance & taxationimfPublic investment spendingimfConsumption taxesimfConsumptionimfPrivate consumptionimfExpenditureimfTaxesimfNational accountsimfPublic investmentsimfEconomicsimfSpendings taximfExpenditures, PublicimfAngolaimfPublic investmentsFinanceEconometric models.Natural resourcesMacroeconomicsPublic FinanceTaxationExhaustible Resources and Economic DevelopmentInvestmentCapitalIntangible CapitalCapacityEconomic Growth of Open EconomiesOne, Two, and Multisector Growth ModelsNational Government Expenditures and Related Policies: InfrastructuresOther Public Investment and Capital StockMacroeconomics: ConsumptionSavingWealthBusiness Taxes and SubsidiesNational Government Expenditures and Related Policies: GeneralPublic finance & taxationPublic investment spendingConsumption taxesConsumptionPrivate consumptionExpenditureTaxesNational accountsPublic investmentsEconomicsSpendings taxExpenditures, Public332.1;332.152Berg Andrew1815664Portillo Rafael1816336Yang Susan1815592Zanna Luis-Felipe1816337International Monetary Fund.Research Department.DcWaIMFBOOK9910961370303321Public Investment in Resource-Abundant Developing Countries4372622UNINA