Dutch Disease, factor mobility, and the Alberta Effect: The case of federations
Do reduced costs of factor mobility mitigate Dutch Disease effects to the extent that they are reversed? The case of federations provides an indication they do. We observe resource blessing (curse) effects at the provincial (federal) level, and argue the difference in outcomes stems from the differe...
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| Format: | Journal Article |
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Blackwell Publishing
2013
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| Online Access: | http://onlinelibrary.wiley.com/journal/10.1111/(ISSN)1540-5982 http://hdl.handle.net/20.500.11937/61803 |
| _version_ | 1848760730943225856 |
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| author | Raveh, Ohad |
| author_facet | Raveh, Ohad |
| author_sort | Raveh, Ohad |
| building | Curtin Institutional Repository |
| collection | Online Access |
| description | Do reduced costs of factor mobility mitigate Dutch Disease effects to the extent that they are reversed? The case of federations provides an indication they do. We observe resource blessing (curse) effects at the provincial (federal) level, and argue the difference in outcomes stems from the difference in factor mobility costs. We construct a simple tax competition model which shows that if factor mobility costs are sufficiently low, a resource-boom triggers an Alberta Effect that mitigates, and possibly reverses, Dutch Disease symptoms. The paper concludes with empirical evidence for the main implications of the model. © Canadian Economics Association. |
| first_indexed | 2025-11-14T10:20:26Z |
| format | Journal Article |
| id | curtin-20.500.11937-61803 |
| institution | Curtin University Malaysia |
| institution_category | Local University |
| last_indexed | 2025-11-14T10:20:26Z |
| publishDate | 2013 |
| publisher | Blackwell Publishing |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | curtin-20.500.11937-618032018-02-01T05:55:52Z Dutch Disease, factor mobility, and the Alberta Effect: The case of federations Raveh, Ohad Do reduced costs of factor mobility mitigate Dutch Disease effects to the extent that they are reversed? The case of federations provides an indication they do. We observe resource blessing (curse) effects at the provincial (federal) level, and argue the difference in outcomes stems from the difference in factor mobility costs. We construct a simple tax competition model which shows that if factor mobility costs are sufficiently low, a resource-boom triggers an Alberta Effect that mitigates, and possibly reverses, Dutch Disease symptoms. The paper concludes with empirical evidence for the main implications of the model. © Canadian Economics Association. 2013 Journal Article http://hdl.handle.net/20.500.11937/61803 10.1111/caje.12050 http://onlinelibrary.wiley.com/journal/10.1111/(ISSN)1540-5982 Blackwell Publishing restricted |
| spellingShingle | Raveh, Ohad Dutch Disease, factor mobility, and the Alberta Effect: The case of federations |
| title | Dutch Disease, factor mobility, and the Alberta Effect: The case of federations |
| title_full | Dutch Disease, factor mobility, and the Alberta Effect: The case of federations |
| title_fullStr | Dutch Disease, factor mobility, and the Alberta Effect: The case of federations |
| title_full_unstemmed | Dutch Disease, factor mobility, and the Alberta Effect: The case of federations |
| title_short | Dutch Disease, factor mobility, and the Alberta Effect: The case of federations |
| title_sort | dutch disease, factor mobility, and the alberta effect: the case of federations |
| url | http://onlinelibrary.wiley.com/journal/10.1111/(ISSN)1540-5982 http://hdl.handle.net/20.500.11937/61803 |