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Natural Resources: Curse or Blessing?
Are natural resources a “curse” or a “blessing”? The empirical evidence suggests either outcome is possible. The paper surveys a variety of hypotheses and supporting evidence for why some countriesExpand
Volatility and the natural resource curse
We provide cross-country evidence that rejects the traditional interpretation of the natural resource curse. First, growth depends negatively on volatility of unanticipated output growth independentExpand
Environmental Policy, Public Finance and the Labour Market in a Second-best World
Environmental and tax policies and the optimal provision of clean and dirty public goods are analysed within the context of a second-best framework of optimal taxation. Households consume both cleanExpand
Too Much Coal, Too Little Oil
Our main message is that it is optimal to use less coal and more oil once one takes account of coal being a backstop which emits much more CO2 than oil. The way of achieving this is to have a steeplyExpand
Pollution control and the Ramsey problem
Pollution is an inevitable by-product of production and is only gradually dissolved by the environment. It can be reduced by producing less and by cleaning up the environment, but neither occur whenExpand
A Closed-form Solution for a Model of Precautionary Saving
This paper analyses life-cycle consumption plans and distinguishes between temporal risk aversion and intertemporal substitution. The results assume that felicity functions are quadratic and thatExpand
Rapacious Resource Depletion, Excessive Investment and Insecure Property Rights: A Puzzle
For a country fractionalized in competing factions, each owning part of the stock of natural exhaustible resources, or with insecure property rights, we analyze how resources are transformed intoExpand
Growth cycles, induced technical change, and perpetual conflict over the distribution of income
Goodwin's predator-prey model of economic growth and perpetual class struggle is extended to allow for (i) differential savings, (ii) the effects of productivity upon the real wage bargain, and (iii)Expand
Capital taxation in the world economy
Can the Natural Resource Curse Be Turned Into a Blessing? The Role of Trade Policies and Institutions
We criticize existing empirical results on the detrimental effects of natural resource dependence on the rate of economic growth after controlling for institutional quality, openness, and initialExpand