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Long-Run Prices of Primary Commodities and Oil Prices Author info | Abstract | Publisher info | Download info | Related research | Statistics Chaudhuri, Kausik
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Acutely volatile movements in primary commodity prices have drawn considerable interest from empirical researchers. Exports of these commodities account for the bulk of export earnings of developing countries. The traditional demand-based framework was unable to explain the marked deterioration in these prices during the 1980s. This paper tries to ascertain the role played by real oil prices in explaining the extremely volatile movements in real prices of primary commodities by taking into account oil price shocks over the period 1973-96, using monthly data. Real primary commodity prices and real oil prices are cointegrated. Additionally, the error in the cointegrating relation stimulates real commodity price adjustment, not real oil price adjustment. Copyright 2001 by Taylor and Francis Group
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Article provided by Taylor and Francis Journals in its journal Applied Economics .
Volume (Year): 33 (2001)
Issue (Month): 4 (March)
Pages: 531-38
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Valeria Costantini & Francesco Gracceva, 2004.
"Social Costs of Energy Disruptions ,"
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