Template-type: ReDIF-Paper 1.0 Author-Name: Alexander James Author-Name-First: Alexander Author-Name-Last: James Author-Workplace-Name: Department of Economics, University of Alaska Anchorage Author-Name: Timothy Retting Author-Name-First: Timothy Author-Name-Last: Retting Author-Workplace-Name: Department of Economics, University of Wyoming Author-Name: Jason Shogren Author-Name-First: Jason Author-Name-Last: Shogren Author-Workplace-Name: Department of Economics, University of Wyoming Author-Name: Brett Watson Author-Name-First: Brett Author-Name-Last: Watson Author-Workplace-Name: Institute of Social and Economic Research, University of Alaska Anchorage Author-Name: Samuel Wills Author-Name-First: Samuel Author-Name-Last: Wills Author-Workplace-Name: Queen's College, University of Cambridge, Department of Economics, University of Sydney; Centre for Applied Macroeconomic Analysis, ANU. Title: Natural-Resource Funds: A Review Abstract: Are natural resources a curse or a blessing? The answer may depend on how natural wealth is managed. By transforming a temporary windfall into a permanent stock in the form of a sovereign wealth fund, resource-rich states can avoid volatility and Dutch Disease effects, save for future generations, and invest locally. Herein we review the theory behind these resource funds, and explore the empirical evidence of their success. Our review is complemented by case studies that highlight some of the more nuanced features, behavior, and effects of resource funds. While the theoretical work highlights prescribing funds as remedies is situational, existing empirical work to complement these prescriptions is minimal. We discuss possible reasons for this, and in doing so highlight some of the challenges associated with empirical research in this area and discuss possible paths forward. Classification-JEL: Q32, Q33, Q38, Q43, Q48 Keywords: Natural Resources, Sovereign Wealth Funds, Survey Creation-Date: 2021-11 Number: 2021-03 File-URL: http://www.econpapers.uaa.alaska.edu/RePEC/ala/wpaper/ALA202103.pdf File-Format: Application/pdf Handle: RePEc:ala:wpaper:2021-03