How should Russia allocate its oil revenues, when it faces sanctions?
Journal: Duo Research Archive (University of Oslo)
Year: 2015

This thesis represents an attempt to provide a deeper knowledge of how a resource-rich country should manage its resources in the most efficient way.I model the Russian economy with the help of the Ramsey model.I specify the trade-off between consumption and investment in the Ramsey model and analyze it in Matlab.I use the runshooting algorithm to find the values of consumption and capital in the next 100 years.There are two types of economy: open and closed.Two scenarios are possible for Russia