The Dutch disease and intergenerational welfare

The Intergenerational Welfare State

demography is a realm of private decisions with public effects. in both highand low-fertility regimes, families make decisions that significantly influence the well-being of others. excessively rapid population growth can threaten economic and ecological viability. Population decline can threaten cultural continuity and fiscal sustainability. as Paul demeny has warned us, there is no invisible ...

Climate Policy and Intergenerational Welfare∗

We use a two-sector OLG model to study the intergenerational effects of a tax designed to conserve a natural resource such as the global atmosphere. The traded asset capitalizes future environmental benefits created by the tax, benefiting the current asset owners, the old generation. Absent a transfer, the tax harms the young generation by decreasing their real wage. Future generations benefit ...

Oil Overdependence and Dutch Disease, KSA Evidence

In the context of recent oil prices fall and resulting budgetary problems faced by KSA, it is very interesting to examine the country’s overdependence on oil revenues. In this paper, we examine whether extreme oil dependence for Saudi Arabia is the symptom of Dutch Disease. We first provide a brief review of the literature on Dutch Disease and the natural resource curse. We then discuss the sym...

Inflation Dynamics in a Dutch Disease Economy

Abstract In this paper, the effect of foreign sector macro-variable on inflation dynamics and firms’ pricing behavior has been investigated in the context of a small open economy New Keynesian Phillips Curve. This curve is derived and estimated for a developing oil-exporting economy suffering from Dutch Disease. This version of NKPC is an extension of Leith and Malley’s (2007) small open econom...

Intergenerational equity and an explicit construction of welfare criteria