Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/67783
Authors: 
Hartwick, John
Hamilton, Kirk
Year of Publication: 
2009
Series/Report no.: 
Queen's Economics Department Working Paper 1220
Abstract: 
We set out a model of a two-good, small open economy exporting a traditional exportable in order to finance capital goods rental payments. We observe that the traditional export sector declines with an exogenous increase in the country's oil export earnings, while the local goods sector expands. For input price effects to emerge, land is needed as a third input. For the large land case, we can have imports of capital steadily decline as oil earnings expand. Earnings from oil sales are stationary under our annuitization construction.
Subjects: 
dutch disease
resource discovery
invariant earnings
JEL: 
F43
Q32
Q33
Document Type: 
Working Paper

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