Oil pricing policies and macroeconomy for an oil-based economy

This paper analyses the oil pricing policies for an oil-based economy within a national planning framework. It contains a total asset maximization problem in the non-oil sector and a macroeconomic model. The main conclusion is that Hotelling's r-percent rule fails to apply for an oil-based nation if the minimum-import constraint becomes binding. Therefore, the difference between the marginal revenue growth rate and the yield on domestic investment turns down when the import constraint is binding and then it goes through several cycles before it turns up as the constraint is non-binding over the planning horizon.