01754cas a2200265 a 4500 AALejournalIMF003103 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451856217 1018-5941 BD-DhAAL BD-DhAAL Takizawa, H. Are Developing Countries Better Off Spending Their Oil Wealth Upfront? / H. Takizawa, E. Gardner, Kenichi Ueda. Washington, D.C. : International Monetary Fund, 2004. 1 online resource (29 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students We question the conventional view that it is optimal for government to maintain a stable level of spending out of oil wealth. We compare this conventional policy recommendation with one where government spends all of its oil revenues upfront, at the same rate as oil is extracted. Using a neoclassical growth model with positive external effects of public spending on consumption and productivity, we find that, if the economy is growing along the steady-state balanced path, the conventional view is validated. However, if the economy starts with a lower capital stock, the welfare ranking across two policies can be reversed. Mode of access: Internet Gardner, E. Ueda, Kenichi. IMF Working Papers; Working Paper ; No. 2004/141 Full text available on IMF http://elibrary.imf.org/view/journals/001/2004/141/001.2004.issue-141-en.xml IMF e-Library