We theoretically and empirically examine the relationship between natural resource revenues and financial development.  In the theoretical part, we present a politico-economic model in which contract enforcement is low and decreasing in resource revenues when political institutions are poor,...

As poor countries deplete their natural resources, for increased consumption to be sustainable some of the revenues should be invested in other public assets.  Further, since such countries typically have acute shortages of public capital, the finance from resource depletion is an opportunity...

This paper explores an oil discovery natural experiment to assess the role of natural resources in determining corruption. We argue that an anticipated oil boom may increase corruption by boosting the value attributed by an elite to being in power when the actual oil exploration begins. We test...

Monetary policy can play an important role in managing oil discoveries. Ideally governments will use fiscal policy to smooth consumption of oil income. In practice this often does not happen, as governments delay spending until oil revenues are received. This induces changes in the economy, both...

Previous studies imply that a positive regional fiscal shock, such as a resource boom, strengthens the desire for separation.  In this paper we present a new and opposite perspective.  We construct a model of endogenous fiscal decentralization that builds on two key notions: a trade-off...

This paper studies how capital-scarce countries should manage volatile resource income.  Existing literature recommends that capital-scarce countries invest domestically, but that volatile resource income should be saved in a foreign sovereign wealth fund.  I reconcile these by combining a...