Current Account and Precautionary Savings for Exporters of Exhaustible Resources

Exporters of exhaustible resources have historically exhibited higher income volatility than other economies, suggesting a heightened role for precautionary savings. This paper uses a parameterized small open economy model to quantify the role of precautionary savings in economies with exhaustible resources, when the only source of uncertainty is the price of the exhaustible resource. Results show that the precautionary motive can generate sizable external sector savings. When aggregated over the sample countries, precautionary savings in 2006 add up to 3.2 percent of GDP. The quantitative imp

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Year of publication:	2009
Authors:	Bems, Rudolfs
Other Persons:	Carvalho Filho, Irineu E. (contributor)
Publisher:	Washington : International Monetary Fund
Subject:	Sparen \| Savings \| Erschöpfbare Ressourcen \| Exhaustible resources \| Leistungsbilanz \| Current account \| Theorie \| Theory \| Kassenhaltungsansatz \| Cash balance approach \| Kleine offene Volkswirtschaft \| Small open economy \| Vorsichtssparen \| Precautionary saving