LEADER 07257oam 22013934 450 001 9910779594603321 005 20230802005948.0 010 $a1-4755-6996-3 010 $a1-4755-4982-2 010 $a1-283-94789-7 035 $a(CKB)2550000001003754 035 $a(EBL)1607066 035 $a(SSID)ssj0000948595 035 $a(PQKBManifestationID)11484550 035 $a(PQKBTitleCode)TC0000948595 035 $a(PQKBWorkID)10950157 035 $a(PQKB)10347270 035 $a(MiAaPQ)EBC1607066 035 $a(Au-PeEL)EBL1607066 035 $a(CaPaEBR)ebr10644326 035 $a(CaONFJC)MIL426039 035 $a(OCoLC)819355356 035 $a(IMF)WPIEE2012274 035 $a(IMF)WPIEA2012274 035 $a(EXLCZ)992550000001003754 100 $a20020129d2012 uf 0 101 0 $aeng 135 $aurcn||||||||| 181 $ctxt 182 $cc 183 $acr 200 10$aPublic Investment in Resource-Abundant Developing Countries /$fAndrew Berg, Rafael Portillo, Susan Yang, Luis-Felipe Zanna 210 1$aWashington, D.C. :$cInternational Monetary Fund,$d2012. 215 $a1 online resource (49 p.) 225 1 $aIMF Working Papers 225 0$aIMF working paper ;$vWP/12/274 300 $a"November 2012" -- verso of t.p. 300 $aAt head of title: Research Department -- verso of t.p. 311 $a1-4755-7051-1 311 $a1-4755-3556-2 320 $aIncludes bibliographical references (p. 42-47). 327 $aCover; 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 Volatility 327 $aB 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 approach 327 $a5 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; References 330 3 $aNatural resource revenues provide a valuable source to finance public investment in developing countries, which frequently face borrowing constraints and tax revenue mobilization problems. This paper develops a dynamic stochastic small open economy model to analyze the macroeconomic effects of investing natural resource revenues, making explicit the role of pervasive features in these countries including public investment inefficiency, absorptive capacity constraints, Dutch disease, and financing needs to sustain capital. Revenue exhaustibility raises medium-term issues of how to sustain capital built during a windfall, while revenue volatility raises short-term concerns about macroeconomic instability. Using the model, country applications show how combining public investment with a resource fund---a sustainable investing approach---can help address the macroeconomic problems associated with both exhaustibility and volatility. The applications also demonstrate how the model can be used to determine the appropriate magnitude of the investment scaling-up (accounting for the financing needs to sustain capital) and the adequate size of a stabilization fund (buffer). 410 0$aIMF Working Papers; Working Paper ;$vNo. 2012/274 606 $aPublic investments$zDeveloping countries$xFinance$xEconometric models 606 $aNatural resources$zDeveloping countries 606 $aMacroeconomics$2imf 606 $aPublic Finance$2imf 606 $aTaxation$2imf 606 $aExhaustible Resources and Economic Development$2imf 606 $aInvestment$2imf 606 $aCapital$2imf 606 $aIntangible Capital$2imf 606 $aCapacity$2imf 606 $aEconomic Growth of Open Economies$2imf 606 $aOne, Two, and Multisector Growth Models$2imf 606 $aNational Government Expenditures and Related Policies: Infrastructures$2imf 606 $aOther Public Investment and Capital Stock$2imf 606 $aMacroeconomics: Consumption$2imf 606 $aSaving$2imf 606 $aWealth$2imf 606 $aBusiness Taxes and Subsidies$2imf 606 $aNational Government Expenditures and Related Policies: General$2imf 606 $aPublic finance & taxation$2imf 606 $aPublic investment spending$2imf 606 $aConsumption taxes$2imf 606 $aConsumption$2imf 606 $aPrivate consumption$2imf 606 $aExpenditure$2imf 606 $aTaxes$2imf 606 $aNational accounts$2imf 606 $aPublic investments$2imf 606 $aEconomics$2imf 606 $aSpendings tax$2imf 606 $aExpenditures, Public$2imf 607 $aAngola$2imf 615 0$aPublic investments$xFinance$xEconometric models. 615 0$aNatural resources 615 7$aMacroeconomics 615 7$aPublic Finance 615 7$aTaxation 615 7$aExhaustible Resources and Economic Development 615 7$aInvestment 615 7$aCapital 615 7$aIntangible Capital 615 7$aCapacity 615 7$aEconomic Growth of Open Economies 615 7$aOne, Two, and Multisector Growth Models 615 7$aNational Government Expenditures and Related Policies: Infrastructures 615 7$aOther Public Investment and Capital Stock 615 7$aMacroeconomics: Consumption 615 7$aSaving 615 7$aWealth 615 7$aBusiness Taxes and Subsidies 615 7$aNational Government Expenditures and Related Policies: General 615 7$aPublic finance & taxation 615 7$aPublic investment spending 615 7$aConsumption taxes 615 7$aConsumption 615 7$aPrivate consumption 615 7$aExpenditure 615 7$aTaxes 615 7$aNational accounts 615 7$aPublic investments 615 7$aEconomics 615 7$aSpendings tax 615 7$aExpenditures, Public 700 $aBerg$b Andrew$01462104 701 $aPortillo$b Rafael$01481167 701 $aYang$b Susan$01481159 701 $aZanna$b Luis-Felipe$01481168 712 02$aInternational Monetary Fund.$bResearch Dept. 801 0$bDcWaIMF 906 $aBOOK 912 $a9910779594603321 996 $aPublic Investment in Resource-Abundant Developing Countries$93804914 997 $aUNINA