Energy and Growth under Flexible Exchange Rates: A Simulation Study / Jeffrey D. Sachs.

Format:

Book

Author/Creator:

Sachs, Jeffrey D.

Contributor:

National Bureau of Economic Research.

Series:

Working Paper Series (National Bureau of Economic Research) no. w0582.

NBER working paper series no. w0582

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Other Title:

Energy and Growth under Flexible Exchange Rates

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 1980.

Summary:

This paper offers a theoretical framework for studying the inter-actions of energy prices and economic growth. The incorporation of energy prices and quantities in a macroeconomic setting focuses on (1)the aggregate technology; (2) the interdependence of energy producers and consumers in the world economy; and (3) the asset markets as the channel through which energy price changes affect output and capital accumulation. While several existing studies consider aspects of these issues, none provides a synthesis. In this analysis, a theoretically sound model of an oil price increase in the world economy is presented, carefully treating topics (1) - (3).The model is solved with computer simulation, as it is far too complex to yield analytical solutions.

Notes:

Print version record

November 1980.