Why do resource-abundant economies grow more slowly?

This article suggests an alternative explanation for why resource-rich econ omies have lower growth rates: because they are likely to be living beyond their means. It is shown that overshooting the steady state's equilibrium c onsumption and investment can be optimal in a Ramsey growth model with natu ral resources. Therefore, the economy will converge to its steady state fro m above, displaying negative growth rates on the transition. Adynamic gener al equilibrium model is calibrated to the Venezuelan economy and shown to a pproximate the economy's performance over the oil boom years adequately.