dc.contributor.author | VAN DER PLOEG, Frederick | |
dc.date.accessioned | 2007-10-27T08:13:12Z | |
dc.date.available | 2007-10-27T08:13:12Z | |
dc.date.issued | 2007 | |
dc.identifier.issn | 1725-6704 | |
dc.identifier.uri | https://hdl.handle.net/1814/7339 | |
dc.description.abstract | Many resource-rich countries have negative genuine saving rates, so deplete their exhaustible
natural resource wealth faster than they build up wealth in other assets. This phenomenon is
stronger in more fractionalized countries with poor legal systems. We explain this by a power
struggle about the control of natural resources. Competing fractions in society thus have a private
stock of financial assets and a common stock of natural resources. We solve a dynamic commonpool
problem and obtain political economy variants of the Hotelling rule for resource depletion
and the Hartwick saving rule necessary to sustain constant consumption in an economy with
exhaustible natural resources. Resource depletion is faster than demanded by the Hotelling rule.
As a result, the country has negative genuine saving rates and is running down its national wealth.
The country saves more in financial assets than the current natural resource rents. Still, the
erosion of natural wealth exceeds the accumulation of financial assets. Even though the power
struggle boosts output, consumption is sub-optimally low. The highlighted political distortions
are larger if the country is more fractionalized. | en |
dc.format.mimetype | application/pdf | |
dc.language.iso | en | en |
dc.publisher | European University Institute | |
dc.relation.ispartofseries | EUI ECO | en |
dc.relation.ispartofseries | 2007/38 | en |
dc.rights | info:eu-repo/semantics/openAccess | |
dc.subject | E20 | en |
dc.subject | F32 | en |
dc.subject | O13 | en |
dc.subject | Q01 | en |
dc.subject | Q32 | en |
dc.subject | Exhaustible natural resources | en |
dc.subject | Hotelling resource rents | en |
dc.subject | Hartwick rule | en |
dc.subject | genuine saving, capital | en |
dc.subject | sustainable consumption | en |
dc.subject | rapacious rent seeking | en |
dc.subject | common pool | en |
dc.subject | voracity | en |
dc.subject | fractionalization | en |
dc.title | Genuine Savings and the Voracity Effect | en |
dc.type | Working Paper | en |
dc.neeo.contributor | VAN DER PLOEG|Frederick|aut| | |
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