Leave the volatility fund alone: principles for managing oil wealth

How should capital-scarce countries manage their volatile oil revenues? Existing literature is conflicted: recommending both to invest them at home, and save them in sovereign wealth funds abroad. I reconcile these views by combining a stochas- tic model of precautionary savings with a deterministic...

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Bibliographic Details
Main Author: Wills, S
Format: Working paper
Published: University of Oxford 2015