A Dynamic CGE Analysis of Exhaustible Resources: The Case of an Oil Exporting Developing Country
AbstractExtensive literature concerned with optimal depletion of an exhaustible resource, with only a few exceptions, ignores the economy-wide and sectoral distribution effects of resource depletion. This paper presents a dynamic computable general equilibrium model to link the underlying natural resource base to the economic performance. The model consists of an intra-temporal price endogenous multisectoral model of a market economy, embedded in an inter-temporal optimal growth and development model. This general equilibrium approach captures the economy-wide and sectoral distribution effects of resource depletion. The model is benchmarked for the Iranian data and is used to examine the issues related to optimal extraction of an exhaustible resource, optimal savings in the economy, and the allocation of investment funds.
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Bibliographic InfoPaper provided by Regional Research Institute, West Virginia University in its series Working Papers with number 200607.
Length: 50 pages
Date of creation: 2006
Date of revision:
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More information through EDIRC
CGE; Computable general equilibrium; exhaustible resources; oil;
Find related papers by JEL classification:
- R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
- P25 - Economic Systems - - Socialist Systems and Transition Economies - - - Urban, Rural, and Regional Economics
- P28 - Economic Systems - - Socialist Systems and Transition Economies - - - Natural Resources; Environment
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- repec:fth:harver:1511 is not listed on IDEAS
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