02013cas a2200253 a 4500 AALejournalIMF005590 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451871807 1018-5941 BD-DhAAL BD-DhAAL Bems, Rudolfs. Current Account and Precautionary Savings for Exporters of Exhaustible Resources / Rudolfs Bems, Irineu de Carvalho Filho. Washington, D.C. : International Monetary Fund, 2009. 1 online resource (38 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 Exporters of exhaustible resources have historically exhibited higher income volatility than other economies, suggesting a heightened role for precautionary savings. This paper uses a parameterized small open economy model to quantify the role of precautionary savings in economies with exhaustible resources, when the only source of uncertainty is the price of the exhaustible resource. Results show that the precautionary motive can generate sizable external sector savings. When aggregated over the sample countries, precautionary savings in 2006 add up to 3.2 percent of GDP. The quantitative importance of the precautionary motive varies considerably across the sample countries and is driven primarily by the weight of exhaustible resource revenues in future income. The parameterized model fares well at capturing current account balances in both cross-section and time-series data. Mode of access: Internet de Carvalho Filho, Irineu. IMF Working Papers; Working Paper ; No. 2009/033 Full text available on IMF http://elibrary.imf.org/view/journals/001/2009/033/001.2009.issue-033-en.xml IMF e-Library