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Optimal Allocation of Oil Revenues to National Development Fund:
A Dynamic General Equilibrium Approach
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Abstract: (4586 Views) |
| This paper tries to determine the optimal share of National Development Fund (NDF) in oil export income. To this aim, it develops and calibrates a dynamic general equilibrium model in the Keynes-Ramsey tradition under uncertainty condition. Optimal path of oil revenues allocation is derived for the period of 1394-1458 under different Total Factor Productivity (TFP) assumptions. The results show that golden rule saving rate in the NDF and government share in oil income are 15 and 52 percent, respectively and maximum reserves of NDF reaches to 4. 83 times of its initial level. |
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| Keywords: Productivity, Permanent shocks, National Development Fund, Precautionary saving, Bellman equation. |
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Full-Text [PDF 1006 kb]
(1613 Downloads)
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Type of Study: Research |
Subject:
Special
Received: 2017/08/7 | Accepted: 2017/08/7 | Published: 2017/08/7
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