Tuesday, December 17, 2013
Some analytical contributions to a mathematical model of resource curse
ANDREA GENOVESE: In this paper we provide some simple generalizations, that generate all the same results, of a model originally presented, along with its simplified version, in two works of Robinson, Torvik and Verdier about the understanding of the resource curse phenomenon, in particular we study how political objectives influence economical choices. More specifically we show how the extraction rate of various public nonrenewable resources, the rate of employment in the public sector and, last but most important, the overall income of a country depend in some way on the aspiration of the politician in charge to keep his power. In addition we analyze some particular cases, related to the same model, in which extraction or employment rates are fixed to a boundary value. We give also a lot of graphics about the results achieved in this extended work.