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The elephant in the ground: managing oil and sovereign wealth

Abstract:

One of the most important developments in international finance and resource economics in the past twenty years is the rapid and widespread emergence of the $6 trillion sovereign wealth fund industry. Oil exporters typically ignore below-ground assets when allocating these funds, and ignore above-ground assets when extracting oil. We present a unified stylized framework for considering both. Subsoil oil should alter a fund's portfolio through additional leverage and hedging. First-best spendi...

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Publication status:
Published

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Publisher:
University of Oxford Publisher's website
Series:
OxCarre Papers
Publication date:
2013-12-31
Paper number:
129
Keywords:
Pubs id:
1143721
Local pid:
pubs:1143721
Deposit date:
2020-12-15

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