Publication

This paper proposes a dynamic computable general equilibrium model to simulate the effect of temporary oil revenue inflows to Ghana. The simulations show that beyond the short-run Dutch disease effects, the relationship between windfall profits, growth and households' welfare is less straightforward than what the simple model of the 'resource curse' suggests. The results suggest that designing a rule to smoothing in and out of oil revenues between productivity enhancing investments and an oil fund is crucial to achieving both shared growth and macroeconomic stability.