Sharif Digital Repository

The poor economic performance of natural resource abundant countries has been studied for a long time and in order to alleviate this problem some different solutions are suggested by economists. One stream among these solutions are those focusing on the distribution mechanism of natural resource revenues and the ownership of these resources. In this study, it is intended to address the effect of change in the ownership of natural resources on politicians’ behavior and people welfare by using political economy approach. Also the optimal share of people from natural resources as a function of political and economic institutions is discussed. In this study, it is shown theoretically that under...