Structural Differences and Macroeconomic Adjustment to Oil Price Increases in a Three-Country Model / Nancy Peregrim Marion, Lars E.O. Svensson.

Format:

Book

Author/Creator:

Marion, Nancy Peregrim.

Contributor:

National Bureau of Economic Research.

Svensson, Lars E.O.

Series:

Working Paper Series (National Bureau of Economic Research) no. w0839.

NBER working paper series no. w0839

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 1982.

Summary:

In this paper a three-country model based on intertemporal maximizing behavior is constructed in order to analyze the effects of oil price increases on welfare levels and trade balance positions. The model can also be used to assess the effects of oil price increases on the world interest rate, on the final goods terms of trade between oil importers (what is sometimes called the real exchange rate), and on output, investment and savings levels, oil imports, wages, and consumption at each date. The analysis highlights the role of structural asymmetries between oil importers in accounting for differences in trade balance responses. A number of structural differences are isolated in turn in order to determine their influence on the final goods terms of trade, which is the key factor in affecting relative trade balance positions.

Notes:

Print version record

1982.